KATHMANDU, April 29: The third edition of the Nepal Investment Summit 2024 kicked off on Sunday with an aspiration of attracting investment in the high potential areas of the country.
According to the Investment Board Nepal (IBN), the third-edition of the Investment Summit has brought together over 1600 prospective foreign investors from more than 55 countries in Kathmandu.
Speaking at the summit, Finance Minister Barshaman Pun said the Council of Ministers has recently stepped up efforts to amend a number of laws, which shows the government is flexible in enforcement of related laws. According to him, the government is simplifying the laws related to taxation to make it more investment-friendly.
“In addition, the government will be unveiling a number of policies and programs in relation to boosting FDI inflows in Nepal.”
The government has started the process to revise nine laws related to the FDI through an ordinance. The proposed laws for amendment include the Lands Act 1964, National Parks and Wildlife Conservation Act 1973, Land Acquisition Act 1977, Electronic Transactions Act 2006, Special Economic Zone Act 2016, and Public Private Partnership and Investment Act 2019.
Investment Board collaborates with KPMG to promote investment p...
Similarly, the Foreign Investment and Technology Transfer Act (FITTA) 2019, Forests Act of 2019, and Industrial Enterprises Act of 2020 will also undergo amendments through this ordinance.
Pun said the FITTA has maintained the provision of providing approval to the FDI within seven days of application. The IT related business will also be provided operating license through automation system. Likewise, it has provision to facilitate foreign firms to repatriate their profits within 15 days of filing the application.
Meanwhile, economists and former finance ministers reiterated their commitments to maintain uniformity in policy implementation. According to them, Nepal serves as a lucrative investment destination as there is stability in the government policies, market assurance to sell the outputs, no labor related issues and no procedural difficulties to repatriate profits.
Former Finance Minister Prakash Sharan Mahat said that there is good relation among the political parties. “No matter whether we are in the mainstream of the government or not, there is consensus in political parties to promote an investment-friendly environment.”
The government has identified agriculture and agro-processing, tourism, hydropower generation and infrastructure development as major priority areas for the country’s development. The additional areas having high potential are IT related services, biodiversity, human resource development, education and health sectors and pharmaceuticals.
Mahat said there is a good opportunity to invest in the hydropower sector as Nepal has inked a long-term agreement with India to sell its electricity. “Also, there is a huge potential to invest in tourism due to diverse landscape and cultural diversity, while the country has potential to be developed as an organic hub to attract investment in agriculture,” Mahat said.
Former Finance Minister Yubaraj Khatiwada said the country follows democratic norms and adopts rule of law, which are the minimum requirement to promote investments. “There is no dispute in the industrial relationship. There is a scientific tax system in place, while the government has developed an effective mechanism to resolve any problems that could crop up in relation to investors.”
Economist Rameshore Khanal also underlined that the political parties are unanimous in promoting investment in Nepal.
Two agreements signed in the first day of Nepal Investment Summit-2024
During the Nepal Investment Summit 2024 in Kathmandu, two agreements were signed between private sector entities, reflecting progress in fostering international partnerships.
Following the opening session of the Nepal Investment Summit 2024, one agreement focused on promoting professional cooperation between domestic and foreign business organizations.
One agreement was reached between the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the National Chamber of Commerce and Industry of Malaysia (NCCIM) to promote bilateral trade and investment.
The FNCCI President Chandra Prasad Dhakal and NCCIM President Tan Sri Soh Thian Lai signed the agreement.
Similarly, another agreement involved two business groups of Nepal and India to collaborate on the construction and operation of a data center. This agreement was signed by BLC Holdings Nepal and Yotta Data Services India for setting up a data center. BLC Group Managing Director Megha Chaudhary and Yotta CEO Sunil Gupta formalized the cooperation.
