Clear Policies Set to Boost American Investment in Nepal: US Ambassador Thompson

Published On: April 28, 2024 12:19 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, April 28: US Ambassador to Nepal Dean R. Thompson has stated that policy stability and clarity will increase foreign investment in Nepal.

During an interaction on "Advancing US-Nepal Commercial Relations" jointly organized by the American Chamber of Commerce in Nepal (AmCham Nepal) and the US Chamber of Commerce on Saturday, Ambassador Thompson highlighted that both domestic and foreign investment will significantly increase with clear policy frameworks. He emphasized the importance of transparent, stable, and predictable policies for economic prosperity, urging the government to focus on these aspects.

"The relationship between America and Nepal has existed for a long time. America wants to see Nepal progress in the fields of prosperous democracy, economic growth and development, and human rights and social justice," he said. "If there is democracy and social justice, economic prosperity can be achieved."

Ambassador Thompson mentioned that the American government has been supporting small enterprises run by women, as well as investing in infrastructure such as electric transmission lines and roads in Nepal recently. He expressed his belief that more American investment can come to Nepal if there is clarity in policy.

Atul Keshap, the Senior Vice President of South Asia at the US Chamber of Commerce, said that this kind of program organized on the eve of the investment conference starting on Sunday in Nepal has conveyed a positive message. He emphasized Nepal's great potential for investment in the digital economy, information technology, agriculture, and other sectors, stating that the country's prosperity will be achieved through the development of these sectors. Keshap stressed the importance of policy clarity to increase investment in Nepal and expressed confidence that a more investment-friendly environment could attract large investments.

"Currently, US investment is only three percent of the total foreign direct investment in Nepal. If an investment-friendly environment and policy can be established, this percentage can increase in the future," he said.

President of AmCham Nepal and Chief Executive Officer (CEO) of MetLife Nepal, Nirmal Kajee Shrestha, said that Nepal is a country with great potential for investment. "Nepal is a country with investment potential, and our current priority is to sustain current investments and increase American investment in the future," he said. "For this, the support of all partners is necessary." He discussed the role played by Keshap, Senior Vice President of South Asia of the US Chamber of Commerce, in getting recognition for the US Chamber of Commerce Nepal in a short period of time.

Karen Welch, Acting Mission Director of the United States Agency for International Development (USAID) Nepal, said that they are collaborating with the government and the private sector on various initiatives. She mentioned that USAID is working in the fields of tourism, information technology, agriculture, and clean energy for Nepal's economic development. She also highlighted the great potential in Nepal's tourism sector. "Nepal's tourism sector is advancing in new ways. There is great potential in this sector for economic development through investment," she said.

Similarly, Seamas Whitesel, Director of South Asia Regional Affairs at the US National Security Council, emphasized that national security would be strengthened with economic prosperity.

Dr Sujeev Shakya, an economist mentioned that Nepal is currently in a position to leverage its demographic advantage. "Nepal is among countries with large economies like China and India. Despite having a sizable youth population, Nepal possesses similar potential," he stated. "This potential must be harnessed." During the program, representatives from businesses operating in Nepal with American investments shared their experiences regarding the opportunities and challenges of working in the country.

Likewise, a memorandum of understanding was signed between AmCham Nepal and the International Trade Administration (ITA) of the US Department of Commerce on US trade and investment strategic cooperation. AmCham President Nirmal Kajee Shrestha and Heather Helm, the Principal Deputy Assistant for Industry and Analysis at ITA, signed the agreement.