KATHMANDU: The Institute for Strategic and Socio-Economic Research (ISSR), Pavilion Group, and Khabarhub jointly organized an interaction program on ‘Post-Investment Summit Nepal-2019’ at the Durbar Marga-based Pavilion Hall on Friday.

Speaking at the interaction, former Minister for Finance, Dr. Ram Saran Mahat said the government organized the Summit in haste.

‘It would have been better had the government carried out ample homework for the Summit,” he said. Former Minister Dr. Mahat said the government should have first focused on creating a conducive environment for the summit rather than hurriedly organizing it,’ he lamented.

He stressed that the government should have prioritized the manufacturing sector rather than infrastructure.

Mahat remarked that instances of violence and blasts will not impart a positive message to potential investors.

Likewise, former Governor Tilak Rawal questioned how Nepal could bring foreign direct investment ‘as external environment and internal commitment was not favorable for investment’.

He was of the opinion that it was very difficult to attract foreign investment in Nepal as Nepalis have weak spending capacity, and finding markets in neighboring India has been a tedious task. “Exporting goods manufactured in Nepal is very hard to export to India and China,” Rawal said.

Also speaking former CEO of Nepal Investment Board, Radhesh Pant said it is high time that the government and private sector worked together to attract more foreign investment in Nepal.

Pant said it was positive that investment laws were formulated ahead of the much-talked summit while casting doubt over the effectiveness of service delivery.

Likewise, former Vice-Chairman of National Planning Commission Prithvi Raj Legal said that the Nepal Investment Summit was successful, and praised the government for ‘seriousness’ in bringing FDI.

Former Nepali Congress lawmaker Ram Hari Khatiwada raised skepticism over the possibility of investment here saying that the government should ensure that negative messages should not go to the international community.

Saying that political stability alone would not play a positive role for development, he stressed on a political commitment for attracting foreign investment.

Also speaking on the occasion, former Governor Deependra Chhetri expressed the optimism of bringing in foreign investment saying that there has been a conducive environment for the same.

KATHMANDU: Qatar’s ambassador to Nepal Yousuf Bin Mohamed Ahmed Al- Hail on Tuesday paid a courtesy call on Minister for Water Supply Bina Magar at the latter’s office in Singha Durbar.

During the meet, they discussed on exporting drinking water to Qatar from Nepal. Minister Magar briefed the envoy that the Ministry was doing necessary homework to export drinking water.

‘I am more focused on exporting spring water utilizing the water sources. It would be better if Qatar government co-works on that. I am thrilled,’ she said.

In reply, the envoy said that Qatar can be a good market for Nepal’s spring water.

KATHMANDU: The Non-Resident Nepali Association (NRNA) will be investing Rs 10 billion for infrastructure development in Nepal.

NRNA inked an agreement with the government during the Nepal Investment Summit that concluded on Saturday.

According to NRNA President Bhawan Bhatta, a fund will be collected from NRNs and investment in different sectors will be made through the fund. As per the agreement reached with the government, NRN will invest in mutual funds, venture capital and investment company among others.

KATHMANDU: Foreign delegates participating in the Nepal Investment Summit 2019 have said that Nepal is an appropriate land for investment.  They said that Nepal has opened the door for foreign investment to accelerate the pace of development.

Speaking at the Summit, South African Ambassador to Nepal, Sadick Jaffer, said that his country is a believer of open economy system, adding that they do not have any trouble to invest in Nepal.

Similarly, United Arab Emirates (UAE)’s Deputy Secretary of Foreign Trade at Ministry of Finance, Abdullah al Saleh, observed that agreements on investment security and on exemption of double taxation to attract foreign investment were important.

Likewise, Malaysia’s Investment Authority CEO Shiva Surya Murti Sundar Raja shared that they had setup investment board offices in major investing countries at the first phase to extend the trade relations aiming to invite direct investment and it might be fruitful to a Nepal as well.

KATHMANDU:  A conducive environment for investment in Nepal has been created, according to Minister for Foreign Affairs, Pradeep Kumar Gyawali.

He made the remark while chairing the first session on ‘Investment Opportunities in Nepal’ under the Nepal Investment Summit 2019. He added that different laws have been formulated in a bid to attract investment.

Minister Gyawali was quick to add that Nepal is a virgin land for investment.

‘Investment-friendly act, hardworking youths and favorable political environment would make it easy for domestic and foreign investors to invest in Nepal,’ he said.

KATHMANDU: With the much-talked Nepal Investment Summit inching closer, Minister Dr. Yuba Raj Khatiwada has expressed his hope that the summit would prove a golden opportunity towards the goal of economic development.

Nepal is hosting the Nepal Investment Summit, 2019 on March 29-30.

‘The Summit is a common mission of Nepalis and combined efforts are necessary to make it a success, utilizing the right opportunity to bring foreign investment home,’ the Minister said.

The government is bracing up for the third Nepal Investment Summit starting from March 29. It will showcase about sixty projects requiring an investment of around USD 30 billion. However, nothing can be said whether foreign investors will be interested to invest in these projects. Lessons from past events tell us that heavy foreign investment cannot be realized until there is a sound investment climate in the country.

The first investment summit in 1992 did bring some foreign investment so that the country achieved a growth rate of seven percent. The second investment summit held in 2017 was able to bring only USD 180 million out of USD 14 billion committed. The low level of investment corresponds to the low level of credibility of the government and poor investment climate.

As of 2011, Nepal had the highest minimum wage in South Asia (US$83.76 per month), followed by Pakistan (US$82.17 per month), India (US$ 64.07 per month), Sri Lanka (US$51.22 per month), and Bangladesh (US$40.46 per month).

Access to market, transparent and predictable legal environment, security, and quality infrastructure are some of the preconditions to attract foreign investment in any country. Unfortunately, none of these elements in Nepal are in good shape. Despite its location in the middle of giant markets, Nepal is unable to reap benefits either from the huge Indian or the Chinese market.

Exports of Nepalese products to the Indian market is not easy. It is an open secret of how India discourages exports of Nepalese products. Often Nepalese goods are held at the Indian checkpoints along the border disrupting the smooth flow of goods. Neither the prospective foreign investors nor the diplomatic missions stationed in Kathmandu are uninformed of this fact.

Nepal lags far behind compared to its South Asian neighbors in terms of its infrastructure development. For example, while India’s road density is 142 km per 100 square km, Nepal’s road density is only 34 km per 100 square km. Similarly, Nepal’s rank is 117th in world infrastructure quality index compared to the 27th position of Sri Lanka, and the 61st position of India. It is not just the case of roads, other infrastructures such as electricity, water supply, and communication are also not strong enough to attract FDI.

Another obstacle in inviting FDI in the country is the low labor productivity but high minimum wage of Nepalese labors. In the past, we said that investors will come to Nepal thanks to its low labor cost. But currently, the labor cost of Nepal is one of the highest in the region. As of 2011, Nepal had the highest minimum wage in South Asia (US$83.76 per month), followed by Pakistan (US$82.17 per month), India (US$ 64.07 per month), Sri Lanka (US$51.22 per month), and Bangladesh (US$40.46 per month).

According to the Global Wage Report 2018/2019, the average real wage growth for the period of 2008-2017 in Nepal is 4.7 per month that is slightly less than in India (505%) and more than in Sri Lanka (4%), Bangladesh (3.4%), and Pakistan (1.8%).

Forthcoming investment summit is being organized without improving the investment climate. As evidenced by the recent doing business report, the environment for business and investment is deteriorating in the country.

On the other hand, according to the Asian Productivity Organization (APO) databook 2017, the productivity of Nepalese labor is only 21% compared to that of Sri Lankan labor and 46% in contrast to the Indian labor. High minimum wage and low productivity make production in Nepal very costly.

The third major obstacle to invite FDI in Nepal is its fragile security situation. Extortion, frequent strikes, rowdy and militant trade unions are common in Nepalese industrial sector. The recent bombing in the Ncell premises and the government’s decision to ban the ‘Biplab’ led Maoist party has again raised suspicion on the security situation of the country.

Governance-related issues such as rampant corruption, lengthy entry and exit process for companies, lengthy visa process for foreign workers etc. are other hurdles for foreign investment. It is found that a foreign worker needs to put more than 30 signatures in terms of paper works for obtaining work permit and visa. Besides, it takes as much as 3 months to complete the process.

Forthcoming investment summit is being organized without improving the investment climate. As evidenced by the recent doing business report, the environment for business and investment is deteriorating in the country.

It appears that the government selected the projects to be showcased in the summit without thorough homework. For an investor, a genuine reason for investing in Nepal at this time could be to benefit from India’s removal from Generalized System of Preferences (GSP) program by the USA, and from the India-China trade conflict. Yet, the dream of FDI influx in the country is least likely to materialize given the existing investment climate.

Given the stark reality of investment climate, the upcoming investment summit bespeaks of a mere ritual that the government is happy to perform with full fanfare. However, as a responsible citizen, we welcome the investors in Nepal hoping that they may perhaps persuade the government to create an enabling environment for making another such summit a success.

Views expressed in this article are the author’s own and do not necessarily reflect the stance of Khabarhub.

KATHMANDU: Prime Minister KP Sharma Oli has claimed that an investment-friendly environment has been created for investment in hydropower projects in the country.

The prime minister told so during the meeting of the parliament while shedding lights on recently launched ‘Water of Nepal for People of Nepal, Each Nepali is a shareholder of Hydropower’ program.

The program aims to generate 3,500 megawatts of electricity by investing Rs 698.8 billion in 19 hydropower projects including the Upper Trishuli III B in Nuwakot which is being constructed by the Nepal Electricity Authority.

GALKOT: National Assembly Chairman Ganesh Prasad Timilsina has opined that the marketization of local products through entrepreneurship would help in boosting the economy. He added that a strong economy would eventually bring prosperity.

He made the remarks while laying a foundation stone for a suspension bridge. The bridge will connect Baglung and Parbat and will facilitate locals.

He added that the construction of physical infrastructure would increase production and cease the supply of goods.

The bridge with 567-meter length will be set up over the Kaligandaki River at the height of 138 meters.

The government is gearing up to celebrate 2020 as Visit Nepal Year. Tribhuvan International Airport (TIA) is a major gateway for international tourists visiting Nepal. Management of TIA is crucial since the first impression is the last impression. Raj Kumar Chhetri, General Manager at TIA is working to give the airport a facelift. Khabarhub caught up with Chhetri. Excerpts:

There are a lot of complaints on the poor state of things at TIA. How are you dealing with those?

I am in the aviation sector for the past 30 years. Thus, I am familiar with the problems facing TIA. When we talk about international airports, we have an image of huge and sophisticated airports in developed countries. We do not have an adequate budget to develop huge infrastructures. Yet, I am trying my best by managing the resources we have.

Given the limited budget, I am working on a way to draw the attention of the tourists in a different manner. I am emphasizing on our unique culture and tradition.

TIA toilets used to be stinky, we made them neat and clean. Also in the past, passengers were disappointed in the lack of drinking water and adequate sitting facilities. Those problems exist no more.

I am also working to install air conditioners in the domestic and international lounge of the airport. Alongside, construction works are on to scale up the TIA infrastructure.

What have you done at the airport as part of welcoming foreign tourists?

Given the limited budget, I am working on a way to draw the attention of the tourists in a different manner. I am emphasizing on our unique culture and tradition. I have designed and decorated the airport the way we welcome guests as per our tradition. This has enchanted visitors.

We have used copper pitchers full of water with flowers on the tops. Walls are decorated with pictures that resemble our culture and tradition. We have also placed a statue of Garuda to welcome tourists. It is in fact, loved by many and people take a selfie with the statue. All these have come at the cost of mere Rs. 5,00,000. These small things have remained impressive to international tourists since these are new sights to them, uncommon at sophisticated airports.

What about the parking problem?

Parking is not a big issue as was in the past. Previously, it was messy. Even pick picketers roamed freely at the mismanaged parking lot. Taxi drivers forced passengers into their vehicles, dragging them. The situation now is different. Yes, the parking lot is a bit distant from the airport. However, you have trolleys to carry your goods from the well-managed parking lot up to the airport.

We are also starting pick and drop service soon so that passengers are directly led to the parking area from the plane.

You once talked of a boutique airport. What does that mean?

By a boutique airport, I mean a modern airport reflecting original traditional and cultural traits. We are been working on it. As part of a short term plan, we are housing a one-horn rhino at the airport within two weeks. That shall give it a distinct look for the tourists. Besides, the airport also has long term projects in developing its infrastructure.

There have been reports of disrupted flights due to cracks on the runway during monsoon? How are you dealing with the problem?

Problem with the runway is true. Now, we are repairing the runway with new materials. This work will be over in three months. We are also working on the taxiway. The airport is getting rid of this problem, soon.

Is TIA becoming a transit point for criminals as rumored?

I cannot tell you what transpired at TIA before my tenure. But after I assumed the position, crime-related activities here have come down by 80 percent. We are serious about the security issue. We hold security meeting once a month that is attended by officers from the revenue office, terminal office; and the police and army. We are frequently updated on the security situation here.