Ambassadors urged to focus on conomic diplomacy

 Kathmandu, Nov. 13

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has pledged continuous support to Nepali diplomatic missions abroad in promoting investment, tourism, and exports.

Speaking at an interaction organised by FNCCI for 17 newly appointed ambassadors and three consuls general, its President Chandra Prasad Dhakal highlighted the federation’s efforts to establish a Foreign Investment Support Desk, aiming to serve as a bridge between investors and the government.

Emphasising the need to create an environment that genuinely attracts foreign investment, he urged the new ambassadors to prioritise economic diplomacy as a standard in their work.

Dhakal also urged the ambassadors to leverage FNCCI’s extensive international network that includes partnerships with around 50 private sector institutions and chambers worldwide. According to him, the FNCCI offers foreign membership, which could be used to engage foreign companies and institutions.

"Foreign investment in Nepal has stagnated at just Rs. 7 billion to Rs. 9 billion annually over the past two years which is just about 0.2 per cent of the country’s GDP," Dhakal stated. He stressed the importance of making investment promotion a collective concern. Highlighting Nepal's economic strengths, he argued that positive factors, such as strong foreign currency reserves, could appeal to international investors.

Dhakal also suggested for collaboration between Nepali missions and FNCCI to organise investment promotion events. He pointed out the potential for exporting Nepali agricultural products to Middle Eastern countries and emphasised the need to address non-tariff barriers affecting Nepali goods in other countries.

Additionally, he mentioned that Nepal’s transition from a least developed country (LDC) will lead to the loss of international benefits, impacting the private sector, and called on the ambassadors to help minimise these effects.

Speaking at the discussion, the newly appointed ambassadors stressed the need to mitigate the impact of LDC graduation and expressed a willingness to work closely with the private sector to attract investment.

Chandra Ghimire, Nepal’s ambassador to the UK, highlighted the importance of initiating a bilateral tax exemption agreement. Krishna Prasad Wali, the proposed ambassador to China, suggested exploring the potential of exporting Himalayan water. Likewise, other ambassadors, including Kapil Shrestha (South Africa), Rita Dhital (Pakistan), Naresh Dhakal (Saudi Arabia), Sanil Nepal (Spain), Prakash Mani Paudel (Portugal), and Netra Prasad Timalsena (Malaysia), expressed their commitment to collaborating with the private sector.

Dr. Shankar Sharma, the proposed ambassador to India, urged participation in key events in India and requested a written summary of issues affecting Nepal-India relations.

Meanwhile, Dr. Sahayog Rupakheti, ambassador to Germany, called for FNCCI to advocate for GSP Plus privileges in European countries and emphasised discussions on ratifying ILO Convention 87.

Deputy Foreign Secretaries Laxman Khanal and Gyan Bahadur Magar stated that economic diplomacy remains a priority for the Ministry of Foreign Affairs (MoFA), with plans to take significant steps in that area.

Published in The Rising Nepal daily on 14 November 2024.