Single-window system for investors will come into effect soon

Kathmandu, Sept. 6:

Minister for Industry, Commerce and Supplies Matrika Yadav said on Thursday that the government would implement the one-window system to facilitate the investors within a couple of months.

“The government is serious about improving the investment climate in the country to attract more domestic and Foreign Direct Investment (FDI). The one-window system would have been already in practice, but the lack of space has delayed the process,” he said, while speaking at an interaction on Bilateral Investment Agreement organised by the Society of Economic Journalists-Nepal (SEJON) and Economic Policy Incubator of the UK Aid.

He said that the service would be activated with the completion of the new building of the Department of Industry.

Minister Yadav urged the business community to approach him directly if there were any obstacles in establishing an enterprise or developing an infrastructure project.

He assured the private sector of full cooperation and facilitation and said that corruption in the process would be eliminated.

“The government is ready to provide security to the investment and profits that you make from your business. However, national interest will be sought in the FDI projects,” said Yadav.

He also said that the people committing economic crimes would have to bear other punishment along with the fines.

Revenue Secretary at the Ministry of Finance Shishir Kumar Dhungana said that the Bilateral Investment Promotion and Protection Agreement (BIPPA) and Double Taxation Avoidance Agreement (DTAA) signed with more than a dozen countries in the past have failed to produce the expected results.

“The agreements couldn’t be fruitful. We need to review those agreements and improve the shortcomings,” he said.

He said that the government was preparing to sign the DTAA with 10 other countries, considering their economic viability in terms of Nepal.

Nepal has signed the BIPPA with six countries and DTAA with 10 countries.

According to Dhungana, the delay in project completion in Nepal was not due to lack of funds but because of the obscure timeline framework and weak spending capacity. National pride development projects such as the Budhigandaki Hydroelectricity, Second International Airport at Nijgadh and Ranijamara Irrigation do not have budget problems but the implementation modality is faulty.

Former advisor of the Board of Investment in Sri Lanka Dr. Nihal Pitigala said that Nepal performed poor in terms of attracting FDI post 1990, while its neighbours India, Bangladesh and Sri Lanka did well.  

“Countries are like companies. So they must have their identity and branding, plan for growth and create position in the international market. Nepal should do it now,” he said.

Senior vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Shekhar Golchha urged the government to be employment-oriented not revenue-oriented.

“When the government becomes employment-oriented investment goes to manufacturing while if it goes after revenue, investment goes to trading,” he said.

According to him, the higher economic growth rates in the past couple of years and rising per capita income indicate a better future as the growth in Nepal has been inclusive.

President of the Confederation of Nepalese Industries Hari Bhakta Sharma suggested the government create a template of basic standards that an FDI project should have.

Joint Secretary at the National Planning Commission (NPC) Madhu Kumar Marasini said that the government should hold meetings with the prospective investors during the United Nations General Assembly every year.

Former Chief Executive Office of the Investment Board of Nepal Radhesh Pant said that every government should respect the business and investment deals signed by the previous governments to create policy stability.

Published in The Rising Nepal daily on 7 September 2018.