Wednesday, November 29, 2023

Govt gearing up to host third investment summit

Kathmandu, Nov. 26

The Government of Nepal is planning for a new edition of investment summit on 21-22 April, 2024 in Kathmandu.

Finance Minister Dr. Prakash Sharan Mahat on Sunday announced plans to host an investment summit to attract investment from native investors, Non-Resident Nepalis, and foreign investors. He is also the coordinator of the Steering Committee of the event organisation.

Speaking at a press conference organised at the Ministry of Finance to announce the event, he informed that the new investment summit would make a significant departure from past formalities, "This time, the conference is geared towards engaging genuine investors."

The government has also planned to hold bilateral meetings with potential investors before the summit.

"Our strategy is to focus on quality over quantity, aiming to involve potential investors rather than a broad audience," said FM Dr. Mahat while emphasizing the government's commitment to safeguarding foreign investment through the implementation of the Bilateral Investment Promotion and Protection Agreement (BIPPA).

According to him, the planned conference is not a mere formality; its purpose is to present proposals to capable investors, secure their investments, and monitor and actualise investment commitments.

Preparations for the conference are underway, with a comprehensive approach that includes not only foreign but also Nepali and Non-Resident Nepali investors.

Dr. Mahat highlighted the involvement of foreign embassies in mobilising support for the investment summit. Operational aspects, legal reforms, and communication with investors will be managed by the implementation and technical committees.

In the first meeting of the steering committee, Minister for Culture, Tourism and Civil Aviation, Sudan Kirati said that legal and procedural obstacles have hindered the promotion and realisation of investment. He emphasized the impact of geopolitical interests in investments, suggesting a focus on Middle Eastern countries.

Dr. Ram Kumar Phuyal, a Member of the National Planning Commission (NPC), called for a critical review of past investment summits, urging a needs-based approach rather than a country-centric focus.

Governor of Nepal Rastra Bank (NRB), Maha Prasad Adhikari, suggested that a tight timeframe should be designed for the preparations of the summit, and feasibility study should be conducted in multiple projects particularly in sectors beyond energy.

Commerce Secretary Narayan Duwadi stressed the need for thorough preparations for government facilities to promote investment. He said that since the facilities announced by the law have not been able to win the confidence of potential investors, so the country needs to adopt a research-based approach to convince investors.

Former Chairman of the Board of Investment, Radhesh Pant, advocated for a results-oriented conference, proposing the implementation of hedging and credit rating. He urged immediate resolution of 10 identified problems, strengthening the Investment Board, and securing permanent staff for sustained project finance.

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), recommended a preliminary conference and encouraged foreign investors to express interest in the Bilateral Investment Promotion and Protection Agreement (BIPPA) in Nepal.

Former President of the Confederation of Nepalese Industries (CNI), Hari Bhakt Sharma, expressed disappointment over unfulfilled promises from previous conferences, and highlighted the urgency of addressing land-related challenges.

Sharma proposed extensive coordination through the investment board, engaging a reputable consultant to create a globally recognized report within the short four-month preparation period.

Earlier, Nepal had organised two investment summits in 2019 and 2017.

The summit in 2019 had secured pledges for investment in 17 large-scale projects while the one in 2017 had witnessed the pledges of US$ 14 billion investment. 

  Published in The Rising Nepal on 27 November 2023.

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