June 6, 2002

Kathmandu: Though the foreign direct investment (FDI) has been one of the major priorities of the government, it has failed to attract foreign investment due to lack of information to potential investors outside the country, said industrialists, traders and hydropower specialists.

The private and public sectors are yet to go hand in hand to make atmosphere more conducive for foreign investment, they said.

Speaking at a seminar on “Attracting FDI to Nepal” organised by the UNCTAD and ICC in cooperation with the Department of Industries and the Nepal Chamber of Commerce, they underlined the need to introduce adequate reforms in order to attract investment.

The United Nations Conference on Trade and Development (UNCTAD) and the International Chamber of Commerce (ICC) are bringing out an Investment Guide to attract foreign direct investment into Nepal.

The Investment Guide, which will be prepared by the end of this year is expected to be helpful in disseminating information about Nepal

Addressing the seminar, Minister for Industry, Commerce and Supplies Purna Bahadur Khadka said that subsequent changes were made in the FDI Policy to attract more investment. “The government believes that the implementation of the policy leads to attract foreign capital, modern technology, new management and technical skills, access to international markets and development of competitive attitudes,” Minister Khadka said.

“The FDI in Nepal has greatly been improved. Nepal has attracted FDI, in hydro-power, manufacturing, tourism, education and health sectors in this period,” he said.

The role of foreign investment in this period is in generating hydro-power, producing consumer products, enhancing exports and creating facilities like hotels, banking, insurance and other financial institutions, educational institution, IT institutions, hospitals, medical colleges has been the main achievements, hospitals, medical colleges has been the main achievements, Minister Khadka said.

The main objective of the Tenth Five Year Plan (2002-2007) of His Majesty’s Government of Nepal is to reduce poverty by creating additional employment opportunities and increasing production, Minister Khadka said.

He further said that the review of the industrial and foreign investment policies to make more attractive is in process and investment approval procedure has been simplified recently.

Treaty of Trade between Nepal and India has recently been signed which provides free access of Nepalese products into India if the product contains some domestic elements. The Treaty has enhanced value addition in the country, he added.

Resident Representative of the UNDP Dr. Henning Karcher, addressing the seminar said that the foreign investment help the least developed countries (LDCs) to promote their economy.

Bhanu Prasad Acharya, Secretary at the Ministry of Industry, Commerce and Supplies said that the government has introduced reforms to attract more FDI in the country.

Director General at the Department of Industry Bharat Bahadur Thapa noted that the reform processes are underway to make atmosphere more conducive for the foreign investment.

President of Nepal Chamber of Commerce Rajesh Kazi Shrestha also pointed out need for private public participation for attracting the foreign investment.

Joint secretary at the Ministry of Culture, Tourism and Civil Aviation Shankar Koirala and chief of the Department of Electricity Development Lekh Man Singh presented working papers.

Participants in the workshop will include foreign and domestic investors, business associations and officials from government departments and agencies with a significant role in attracting facilitating FDI.