Japanese investors eye hospitality sector

Kathmandu, Sept. 5

Japanese businesspeople have expressed interest in making investment in Nepal's hospitality and tourism sector. In a discussion with Nepali entrepreneurs on Friday in Kathmandu, they said the prospects of political and policy stability following the formation of near-two-third majority government, has enhanced their confidence to invest in Nepal.

Business delegation led by Toshiyuki Nakamura had discussed the investment prospects with owner of Taro Treks and Expedition, and Taro Japanese Language Consultancy Bishal Bhattarai, President of Trekking Agencies Association of Nepal Sagar Pandey, Member of Hotel Association of Nepal Bidhata Shrestha, Director of Royal Express Cargo Pramod Dhakal, and tourism entrepreneurs Amrit Dhakal and Furi-G.Sherpa, among others.

"Initially, we are interested to make an investment in a Japanese cuisine restaurant," said Toshiyuki. He runs seven companies in Japan in hospitality, transport and logistics sectors. He has employed several Nepali workers in his companies and wants to launch a restaurant within a couple of years so that when Nepalis return from Japan they could be employed here. It is about employing the skilled workers in the field, he said.

Talking about the decreasing number of tourists, Japanese entrepreneurs said that the depreciating Japanese currency against the US dollar, increased flight fare and lack of direct connectivity had negatively impacted it. Stating that the media coverage of recent Bhotekoshi floods had scared them and they were about to cancel the trip to Nepal, they said that when they arrived here, the situation was otherwise.

Nepali entrepreneurs have expressed concerns over the decreasing number of Japanese tourists since the aftermath of the COVID-19 pandemic. Bhattarai, who hosted the discussion, said that attracting tourists and investment is a highly sensitive issue, so the government, private sector and media should exhibit utmost sensitivity while dealing with them.

Nepali entrepreneurs also said that the government should launch initiative to tell the international community that the country is safe for tourism and investment, and only a small part of the country is affected by the devastating floods. 

Published in The Rising Nepal on 6 September 2026.   

Ncell pays Rs. 4.96 B for licence renewal

Kathmandu, Aug. 20

Private telecommunications service provider Ncell Axiata has paid Rs. 4.96 billion to the government towards the renewal fee for its mobile service licence.

Of the total amount it paid to the Nepal Telecommunications Authority (NTA), Rs. 4.25 billion represents the principal amount of the outstanding instalment of the licence renewal fee.

The payment also includes Rs. 649.26 million in interest for 328 days from 23 August 2025 to the end of the 2025/26 fiscal year, and a further Rs. 65.32 million in interest for 33 days from 17 July to 18 August 2026, the company said.

Ncell had already paid the instalment and interest due up to 22 August 2025. On 22 August last year, the company paid Rs. 3.29 billion, following an earlier payment of Rs. 2 billion on 13 July 2025.

The government had allowed Ncell to pay the Rs. 20 billion mobile service licence renewal fees in four instalments. A Cabinet meeting in August 2024 had decided that the outstanding instalments would carry annual interest of 10 per cent.

The company had initially applied for licence renewal after paying Rs. 4 billion as the first instalment in May 2024. The government subsequently allowed the remaining amount to be paid in instalments.

Ncell said that it has contributed around Rs. 375 billion to the government in taxes and various fees since its establishment. The payments include licence and renewal fees, royalties, telecommunications service charges and income tax, among other government levies.

The company began operations after receiving a GSM cellular mobile service licence on 31 August 2004 under the brand name Mero Mobile.

 Published in The Rising Nepal on 21 August 2026.   

NICCI praises govt for FDI automation

Kathmandu, Feb. 20

The Nepal-India Chamber of Commerce and Industry (NICCI) has welcomed the government’s decision to operationalise foreign investment approval services through an automated route, describing it as a positive and timely reform aimed at improving Nepal’s investment climate.

The newly introduced automated mechanism – published in the national Gazette on Monday, February 16 – is expected to reduce procedural delays, enhance transparency, and simplify administrative processes for foreign investors seeking approval to invest in Nepal, NICCI said in a statement on Friday.

By digitising and streamlining approvals, the government has taken an important step toward aligning Nepal’s regulatory environment with global best practices and investor expectations.

“Though the current government had the only mandate of holding an election, it has been trying to create a conducive environment for business,” NICCI President Sunil KC said.

NICCI had organised a closed-door interaction with Industry Minister Anil Kumar Sinha a month ago, submitted recommendations and requested the government to reform the age-old laws to facilitate foreign direct investment.

Praising the government’s move, co-convenor of Indian Business Forum (IBF) under NICCI, Saibal Gosh noted that while automation is a significant reform, it should be seen as part of a broader, more comprehensive investment strategy.

“This is an excellent step, though this alone may not be enough to attract FDI,” he said, adding that the new government needs to come up with a benefit scheme for new FDI investors, which is aligned with investment schemes offered by different Indian states and the central government of India.

NICCI also emphasised that regional competition for investment has intensified, with neighbouring countries and Indian states offering targeted fiscal incentives, sector-specific benefits, and facilitation packages to attract global capital. In this context, Nepal must complement procedural reforms with competitive incentive frameworks, policy predictability, and effective aftercare services for investors, read the statement.

The bi-national chamber further stressed that closer alignment of Nepal’s FDI incentive structures with those prevailing in India would be particularly important, given the strong economic interlinkages, geographic proximity, and growing cross-border investment interest between the two countries.

 Published in The Rising Nepal daily on 21 February 2026.     

FNCCI, Qatar Chamber finalize Joint Council

Kathmandu, Feb. 8

A delegation from the Qatar Chamber of Commerce and Industry (QCCI) has arrived in Kathmandu to hold discussions on the Joint Business Council (JBC) formed between the Federation of Nepalese Chambers of Commerce and Industry and the Qatar Chamber of Commerce and Industry.

The agreement to establish the Joint Business Council was signed in April 2024 during the visit of the Amir of the State of Qatar, Sheikh Tamim bin Hamad Al Thani, to Nepal, further strengthening economic cooperation between the two countries.

The visit is taking place at the invitation of Chandra Prasad Dhakal, President of FNCCI. The Qatari delegation is led by Mohd Ahmad M A Alobaidly, Board Member of the Qatar Chamber of Commerce and Industry, the FNCCI informed in a statement on Sunday.

The meetings will be held on February 9 and 10 in Kathmandu and are expected to give final shape and operational direction to the Joint Business Council.

The JBC has been established as a structured platform to promote dialogue, business cooperation and direct engagement between the private sectors of Nepal and Qatar.

According to the FNCCI, the delegation will hold high-level meetings during their stay in Kathmandu. They are scheduled to meet with Rameshore Prasad Khanal, Minister of Finance; Anil Kumar Sinha, Minister of Industry, Commerce and Supplies and Minister of Culture, Tourism and Civil Aviation; and Dr. Biswo Nath Poudel, Governor of the Nepal Rastra Bank.

"The FNCCI believes that finalising and activating the Joint Business Council will play an important role in expanding bilateral trade, encouraging investment flows and facilitating business partnerships between the two countries," read the statement. The discussions will focus on making the council practical and results-oriented, with an emphasis on identifying concrete areas of collaboration.

Recent high-level engagements between the two countries have created positive momentum for greater private sector involvement, and FNCCI sees this visit as a timely step in that direction.

Nepal offers investment opportunities across sectors such as hydropower and renewable energy, tourism, agro-processing, information technology, manufacturing, infrastructure, health and education.

FNCCI expects that the outcomes of this meeting will further strengthen Nepal-Qatar economic relations and contribute to increased trade and investment in the coming years.

Published in The Rising Nepal daily on 9 February 2026.  

Marriott to manage Lumbini Palace

Kathmandu, Jan. 8

Lumbini Palace Resort Limited, in Siyari-5 of Rupandehi, has signed a formal Hotel Management Agreement (HMA) with Marriott International to upgrade and operate under the Lumbini Marriott Resort and Spa brand.

This collaboration marks a historic milestone as Marriott International’s first and only presence in Nepal outside of the Kathmandu Valley, the company said in a statement.

Chairman of Lumbini Palace Resort Deepak Pandey, Managing Director Roshan Kumar Neupane, and Chief Operations Officer of Asia Pacific of Marriott International Neeraj Govil, Senior VP, Development South Asia Kiran Andicott, and VP of Development South Asia Juhi Roy were present on the occasion.

The resort aims to secure its official five-star operating license by the end of the current fiscal year, it said, adding that it is set to become Nepal’s first and only Water Resort, introduced with futuristic and high-tech amenities.

It will feature musical fountains and 3D water screens, motor boating and mini cruises, and a dedicated water restaurant and water spa. It will also develop a Buddha Theme Park that will include mini stupas and a mini Buddha Museum, as well as dedicated meditation zones and cultural centres.

In response to global climate challenges, the resort is designed to be a Green Certified (Gold) Wellness Retreat and Eco-Resort.

“It strictly adheres to international standards for environmental protection, energy conservation, and sustainable development. The resort is being developed as a multi-specialty resort with world-class infrastructure to support all major sports played in Nepal, positioning the region as a hub for sports tourism,” read the statement.

Furthermore, the resort is set to distinguish itself as Nepal’s first Organic Five-Star Wellness Luxury Resort, promoting naturotherapy and sustainable human health through organic-certified practices.

The resort also said that preparations were underway for an Initial Public Offering (IPO). 

Published in The Rising Nepal daily on 9 January 2026. 

Himalayan Hideaway launches New Year service

Kathmandu, Dec. 24

Himalayan Hideaway Resort Pokhara developed and to be operated by Centara Hotels and Resorts will open on 1 January 2026.

“This milestone marks the introduction of the first Thai luxury hospitality brand to the city, expanding the group’s international portfolio within the region,” the company informed in a statement.

According to it, situated in the hills of Kaskikot, approximately 35-minute drive from Pokhara, the resort is positioned as a secluded sanctuary offering panoramic views of the Annapurna Range and Fishtail Mountain.

The property comprises 42 guest rooms, suites, and villas designed with a combination of Nepali architectural elements and Thai-inspired accents. Accommodations include features such as open skylights, private gardens, and expansive balconies.

The resort’s facilities include four distinct dining venues—featuring an all-day restaurant, a specialty Pan-Asian outlet, and a scenic tea house—alongside a gym, an outdoor swimming pool, and a spa.

Beyond on-site amenities, the establishment offers curated local experiences, including village walks on the Sarangkot Loop Trail and paragliding over Phewa Lake.

General Manager of the resort Prapaijit Thongma said that the resort aims to provide a refined experiential luxury that blends Nepali and Thai hospitality. Furthermore, the resort operates under a social enterprise ethos, intended to support local livelihoods and community wellbeing in the Kaskikot region.

Published in The Rising Nepal daily on 25 December 2025.

IBN working to change country’s negative image abroad: Gyewali

Kathmandu, Nov. 23

Chief Executive Officer of the Investment Board Nepal (IBN) Sushil Gyewali has said that efforts are being made to improve the negative international image created by the vandalism and damage of business as well as public and private property during the Gen Z protests in September this year.

“The recent events have left investors in a state of ‘wait and see’. So the IBN is actively working to restore investor confidence and revive the investment climate,” he said at a meeting with the Nepal Association of Financial Journalists (NAFIJ) on Sunday.

Despite the crisis, the IBN has continued its work without interruption, which has sent a positive message to investors, he said, and added, “We have made efforts to bring all stakeholders together with the resolve that 'we must rise' and create an atmosphere of trust.”

To minimise the impacts, the board has already held high-level discussions with the private sector, government bodies, and investors.

Despite the challenges, there has been an encouraging increase in investment approvals. In the past, around Rs. 100 billion in investments were approved annually, but in the last fiscal year 2024/25, the Board approved investments amounting to Rs. 256 billion. Gyewali mentioned that an ambitious target of Rs. 700 billion has been set for the current fiscal year.

He also noted that there are currently investment projects worth Rs. 1.6 trillion in the pipeline, which has further boosted optimism. These include future-oriented projects like Information Technology parks, hydrogen energy, and agriculture-solar projects, in addition to traditional hydropower projects.

So far, the board has approved billions of rupees in investments across sectors such as hydropower, cement, tourism, infrastructure, and information technology. The board has also changed its operational approach to ensure a continuous flow of investments.

According to Gyewali, in the past, the government would determine projects and then seek investors, but now the board is encouraging investors to come forward with innovative ideas and proposals. "We have been asking investors, 'What do you want?' This has resulted in projects that align with market demand and the expertise of investors," he added.

He pointed out that the biggest concerns of foreign investors are political instability and policy changes. To address these, the board has amended laws to provide guarantees for the protection of investments.

The board has introduced laws and policies to protect projects from the negative impact of government changes or new laws after an agreement is signed with investors. Gyewali also mentioned that the board's structure, chaired by the Prime Minister, has made it easier to fast-track decisions for large projects and coordinate between various ministries.

The board has worked to reduce bureaucratic red tape and create an environment where investors can receive services under one roof.

Published in The Rising Nepal daily on 24 November 2025.

FNCCI, Spanish Chamber ED discuss economic cooperation

Kathmandu, Aug. 9

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), held a meeting with Imaculada Riera Rene, Executive Director of the Spanish Chamber of Commerce in Kathmandu on Friday.

The discussion focused on economic cooperation, trade, investment, small and medium-sized enterprises (SMEs), and long-term partnerships between Nepal and Spain, the FNCCI said in a statement.

During the meeting, Dhakal highlighted the importance of strengthening Nepal-Spain relations through the private sector. He noted that collaboration with Spain could introduce technology, capital, and experience to Nepal.

According to the statement, Dhakal acknowledged the initial draft of the proposed Memorandum of Understanding (MoU) with the Spanish Chamber of Commerce and confirmed plans for both parties to sign it after a detailed review.

“This proposed MoU covers practical aspects such as trade promotion, investment, market information exchange, delegation support and cooperation among SMEs,” he said. He also mentioned that the MoU would facilitate Spanish businesses’ understanding of Nepal and help Nepali businesses use Spain as a gateway to Europe.

Both sides identified sectors like tourism, infrastructure, hydropower, renewable energy, agricultural processing, and information technology as areas for investment. Rene expressed interest in expanding business cooperation and stated the MoU would enhance coordination between the two private sectors.

Former FNCCI President Chandi Raj Dhakal and FNCCI Treasurer Bharat Raj Acharya attended the meeting.

Published in The Rising Nepal daily on 10 August 2025.

Nepali business delegation visits Germany

Kathmandu, July 13

The Nepali Embassy in Germany, in collaboration with the OAV – German Asia Pacific Business Association, and the Nepal-German Chamber of Commerce and Industry (NGCCI), jointly hosted a high-level business visit and B2B meetings in Hamburg to enhance bilateral trade and investment.

The visit featured a special tour of the Airbus facility where delegates learned about German aviation excellence and Nepal’s use of Airbus helicopters in high-altitude areas like the Everest Base Camp. Airbus officials praised Nepali engineers involved in their production, noting their technical skills and reliability, NGCCI informed in a statement on Sunday.

Nepal’s Ambassador to Germany Dr. Sail Rupakheti, who played a leading role in bringing together business leaders from both countries, urged the NGCCI to facilitate more B2B meetings to attract investment and streamline business travel.

Likewise, NGCCI President Santosh C. Kunwar – leader of the Nepali delegation – had addressed concerns raised by German businesses regarding Nepal’s procurement process.

More than 150 participants from countries including Germany, Nepal, India, China, Japan, and Singapore attended the event. Nepal’s Barasinghe Beer, represented by Muskan Shrestha and Ravi KC, was a highlight of the event. "It became the most consumed beverage at the event and demonstrated growing global curiosity for Nepali products," read the statement.

The programme underlined the mutual commitment to improving trade relations. Dr. Rupakheti emphasised that NGCCI must now take the lead in coordinating future business exchanges and fostering a more favourable investment climate in Nepal.

Published in The Rising Nepal daily on 14 July 2025.   

FM Rana, German counterpart discuss issues of bilateral interest

Kathmandu, July 8

Minster for Foreign Affairs Dr. Arzu Rana Deuba held a bilateral meeting with her German counterpart Dr. Johann David Wadephul on Tuesday where the two discussed Nepal-Germany relations, matters of bilateral interest, and a wide range of issues of mutual concern.

FM Dr. Rana recalled that Germany is one of Nepal’s longstanding and major development and trade partners, and expressed her gratitude to the German government and people for their continued support in economic, social, and other sectors, her secretariat informed in a statement.

Emphasising the need to further promote bilateral trade between Nepal and Germany, she called for joint efforts and encouraged stronger networking between the private sectors of both countries. She also invited German investment in Nepal, particularly in areas such as the establishment of a chemical fertiliser plant.

Dr. Rana informed Dr. Wadephul that Nepal is preparing a strategy to ensure a smooth and sustainable transition following its graduation from the Least Developed Country (LDC) status in 2026. She stated that Nepal would require continued support in terms of resources, technology, and financing from Germany, the European Union, and other development partners during this process.

Likewise, mentioning Nepal’s candidacies for membership of the United Nations Human Rights Council for the term 2027–2029, the Economic and Social Council for 2029–2031, and the non-permanent seat on the UN Security Council for 2037–2038, FM Dr. Rana requested for Germany's support. In response, Foreign Minister Dr. Wadephul expressed Germany’s commitment to support Nepal in these candidatures.

Minister Dr. Rana also highlighted that although Germany is the second-largest source of European tourists for Nepal and both countries share great potential in tourism, the absence of direct air connectivity has prevented full utilisation of this potential. She therefore urged for the establishment of direct flights between the two countries.

"Due to the inclusion of Nepali airlines on the EU aviation safety list and the resulting flight ban, there have been serious implications for tourism promotion between Nepal and Europe," she said while mentioning that the Government of Nepal has tabled two bills in Parliament for the restructuring of the Civil Aviation Authority of Nepal.

The proposed legislation incorporates not only global best practices but also aligns with the recommendations of the EU and International Civil Aviation Organisation (ICAO). "Germany, can be a key EU member state, to play a role in lifting the ban on Nepali airlines," said Dr. Rana. In response, Dr. Wadephul assured of full cooperation in this regard.

During the meeting, Dr. Rana also raised the issue of the devastating impacts of climate change in Nepal, highlighting the country’s vulnerability and the severe consequences it is already facing. She expressed Nepal’s hope for Germany’s support in advancing its campaign for climate justice. 

Published in The Rising Nepal daily on 9 July 2025.   

'Seville Commitment milestone for LDCs' development'

PM returns home from Spain

Kathmandu, July 4

Prime Minister K.P. Sharma Oli has returned to Nepal after leading the Nepali delegation at the fourth International Conference on Financing for Development (FfD4) in Seville, Spain, held from June 30 to July 4.

The Prime Minister had led a delegation to Seville at the joint invitation of Spanish Prime Minister Pedro Sánchez Pérez Castejón and United Nations Secretary-General António Guterres. The conference aimed to bolster international cooperation for development and advocate for the needs of least developed countries (LDCs).

Addressing the General Debate of the conference on June 30, 2025, Prime Minister Oli, in his capacity as the Chair of the Global Coordination Bureau of Least Developed Countries, highlighted the significant challenges faced by LDCs. He urged developed nations and development partners to enhance their support and expand partnerships to address these issues.

Upon his arrival from Spain, the Prime Minister expressed confidence that the 'Sevilla Commitment' would serve as a milestone for the smooth and sustainable graduation and overall development and prosperity of LDCs. He also called for greater commitment and effort from the global community to implement this commitment.

During his address, Prime Minister Oli stated that Nepal is on track to graduate from an LDC by 2026 and is actively mobilising the necessary resources for this transition. He appealed to development partners and donor agencies to provide further assistance to Nepal's economic development.

PM Oli co-chaired a multi-stakeholder roundtable on 'Revitalising international development cooperation' where he emphasised the profound impact of poverty, inequality, debt burden, and climate change on LDCs and other developing countries. He underscored the importance of strengthening international development cooperation to tackle these challenges.

Prime Minister Oli also chaired a High-Level Event on LDCs, where he highlighted that these nations grapple with issues such as poverty, hunger, malnutrition, and trade deficits. He pointed out that a significant portion of their budgets is allocated to debt servicing, making it difficult to meet basic needs like education and healthcare for their citizens.

In this context, he called for concrete steps to implement the commitments made at the Financing for Development conference and for practical action plans to reduce the financial gap.

Similarly, Prime Minister Oli addressed the 'Unlocking water and sanitation financing through heads of state initiative', announcing Nepal's inclusion in this campaign related to water and sanitation. He reiterated Nepal's government's commitment to providing citizens with fundamental services, including access to clean drinking water and sanitation, which are enshrined as fundamental rights in Nepal's constitution.

At an event hosted by Spanish Prime Minister Pedro Sánchez, 'Investing in global solidarity: A new vision of development cooperation', Prime Minister Oli underscored the increasing importance of development partnerships for developing nations.

He stressed the need to increase concessional resources for developing countries and adhere to principles related to effective development cooperation to maximise outcomes from such assistance.

On the eve of the conference, June 29, Prime Minister Oli addressed the 'Civil society forum for FfD4', an event organised by civil society on development finance. He said that civil society is a crucial partner in achieving sustainable development goals and advocated for empowering their role in policy formulation, monitoring, and accountability systems.

On the sidelines of the conference, Prime Minister Oli held bilateral meetings with several heads of state and government. He met with Spanish Prime Minister Pedro Sánchez to discuss various matters of bilateral interest between Nepal and Spain. He also held discussions with Estonian President Alar Karis, Portuguese Prime Minister Luís Montenegro, and Egyptian Prime Minister Dr. Mostafa Kamal Madbouly on bilateral interests and concerns.

During his meeting with the Egyptian Prime Minister, Pm Oli appreciated Egypt for its ongoing cooperation in securing the release of Bipin Joshi, a Nepali citizen held captive by HAMAS, and requested continued efforts.

Prime Minister Oli also met with United Nations Secretary-General António Guterres. Their discussions focused on strengthening the relationship between Nepal and the UN, reinforcing multilateralism, and ensuring a sustainable transition for Nepal's graduation from an LDC. Guterres commended Nepal's contributions to UN peacekeeping.

At an interaction organised by the Nepali Embassy in Madrid with the Spanish business community, Prime Minister Oli invited investment in sectors such as hydropower, tourism, infrastructure, agriculture, and information technology. He also participated in an interaction with the Nepali diaspora in Spain, and discussed their potential role in Nepal's development and instructed the Nepali Embassy to undertake more effective and public-oriented initiatives to ensure the welfare and security of Nepalis residing there.

The Ministry of Foreign Affairs (MoFA) maintained that the Prime Minister's active participation elevated Nepal's image on the international stage. His discussions with the Spanish business community and Nepali diaspora are expected to promote investment in Nepal.

PM Oli's delegation included his spouse Radhika Shakya, his chief advisor Bishnu Prasad Rimal, and other senior government officials.

Published in The Rising Nepal daily on 5 July 2025.   

PM urges Malaysian investors to invest in Nepal

Kathmandu, July 5

A delegation from the Malaysia–Nepal Business Council called on Prime Minister KP Sharma Oli on Saturday and discussed investment opportunities and prospects in various sectors of Nepal.

During the meeting held at the Prime Minister's residence in Baluwatar, the 20-member delegation led by Pradeep Kumar Kukreja, Executive Chairman of Malaysia's Paradise Group, informed the Prime Minister that they were visiting Nepal with the intention of exploring meaningful business ventures, fostering bilateral relations, and gaining a detailed understanding of Nepal’s business environment.

According to a statement issued by PM's secretariat, he said that the government has been undertaking legal and structural reforms to promote and facilitate foreign investment as part of Nepal’s journey towards prosperity. He urged the delegation to invest in Nepal and assured them that the government is always ready to work in collaboration with the business community to identify and implement necessary improvements and facilitation measures in the future.

The delegation expressed interest in working in sectors such as plastic waste processing, information technology parks, and tourism, read the statement.

During the meeting, discussions were also held on the potential for investment in tourism, agriculture, information technology, human resources, textiles, and other sectors in Nepal.

The delegation, which arrived in Kathmandu on Wednesday, was facilitated by the Embassy of Nepal in Malaysia.

Prime Minister’s Chief Advisor Bishnu Prasad Rimal, Economic Advisor Dr. Yuba Raj Khatiwad, and other officials were present at the meeting. 

Published in The Rising Nepal daily on 6 July 2025.   

Prozeal to develop 500 MW solar energy project

 Kathmandu, Jan. 24

The joint venture Prozeal Green Energy Nepal, formed between India’s largest solar EPC company Prozeal Green Energy and Nepal’s Golyan Power Limited, is officially launched in Nepal.

The new clean energy business venture was announced on Wednesday at the Prozeal Green Energy Summit held in Kathmandu.

The company aims to accelerate the adoption of solar energy in Nepal and contribute to the country's renewable energy capacity. The venture will focus on developing both rooftop solar systems and ground-mounted photovoltaic (PV) solar plants.

Under the joint venture agreement, Prozeal Green Energy will lead as an Engineering, Procurement, and Construction (EPC) development company, leveraging its extensive expertise in renewable energy. Golyan Power will focus on business development, land acquisition, and financial management, Golyan Group informed in a statement on Friday.

The joint venture has set an ambitious target to establish over 500 MW of solar energy projects across Nepal within the next 24 months. "This move is expected to position Nepal as a leader in clean energy and marks a transformative step in the nation’s renewable energy sector," said Praveen Aryal, Director of the newly announced company.
"This partnership reflects a decisive step to meet Nepal’s growing energy demands and facilitate economic growth. Our shared goal is to deliver world-class energy solutions that address today’s challenges and pave the way for a prosperous and sustainable future," he said.

Speaking at the summit, Shobhit Baijnath Rai, Chairman of Prozeal Green Energy, said that the partnership with Golyan Group will develop over 500 MW of solar energy projects.

Prozeal has established a global presence with over 2 GW of installed capacity and a client base of more than 300 across commercial, industrial, institutional and governmental sectors.

Speaking on the occasion, Dr. Ram Prasad Dhital, Chairman of the Electricity Regulation Commission, emphasised the government’s support for renewable energy projects. He said,
"The government is always ready to assist the private sector in advancing renewable energy initiatives. We trust you will continue to invest more in this sector."

Ganesh Karki, President of the Independent Power Producers Association of Nepal (IPPAN), expressed enthusiasm about the venture’s 500 MW target, and said that if the government provided the necessary support, the private sector could produce 1,000 MW of energy next year.

"Achieving this will reduce or eliminate the need to import electricity," he said while stressing the need for a clear vision to advance solar energy and incorporate solar initiatives in the upcoming Electricity Act.

Dr. Sandeep Shah, President of the Solar Power Association of Nepal (SOPAN), highlighted the potential for solar energy production from regions like Mustang, provided transmission line access is facilitated. He urged the government to address policy barriers and streamline solutions to overcome existing challenges in solar energy production.

 Published in The Rising Nepal daily on 25 January 2025. 

AmCham stresses favourable business climate

Kathmandu, Dec. 18

The American Chamber of Commerce in Nepal (AmCham Nepal) has suggested reforms across diverse sectors, emphasising the need to create a favourable environment for business growth and bilateral cooperation.

In a comprehensive memorandum to the Government of Nepal, presented to the Deputy Prime Minister and Minister for Finance, Bishnu Prasad Paudel, AmCham Nepal has outlined strategic recommendations to enhance the country’s investment climate and foster stronger economic ties between the United States and Nepal.

The organisation's Chairperson Nirmal Kajee Shrestha and board member Samrath Mogha discussed with DPM Paudel the critical role of US investments in fostering inclusive economic growth in Nepal.

The delegation emphasised how collaboration with AmCham Nepal could drive innovation, create jobs and build a dynamic economy through US investments, it said in a statement on Wednesday.
AmCham Nepal underscored the importance of introducing favourable policies and regulatory frameworks to attract and sustain foreign investments.

"Such measures are crucial for ensuring a business-friendly environment where US investors feel confident in contributing to Nepal’s sustainable development," said Mogha.
The memorandum included issues like facilitating the smooth repatriation of post-tax profits, unlocking the potential of the ICT industry to generate significant revenue for Nepal, ensuring tax stability for businesses, addressing ride-sharing regulations, revising Service VAT Tax policies, enhancing the Double Tax Avoidance Agreement (DTAA), and strengthening measures to combat anti-money laundering.
"The recommendations aim to address key challenges faced by US companies operating in Nepal, enabling them to contribute effectively to the nation’s economic growth," read the statement.
AmCham Nepal remains committed to policy advocacy, working closely with the Government of Nepal to support the seamless operation of US companies in the country, said Shrestha.

 Published in The Rising Nepal daily on 19 December 2024.   

56 FDI projects worth Rs. 2.1 B approved in one month

Kathmandu, Dec. 17

The Department of Industry (DoI) has approved 56 projects under the Foreign Direct Investment (FDI) in the month of Mangsir (mid-November to mid-December 2024) with the commitment of Rs. 2.11 billion.

Of these projects, 29 (worth Rs. 502 million) were approved through the automated route while 27 (of Rs. 1.60 billion) were approved through the approval route, informed the Foreign Investment and Technology Transfer Section of the DoI in its report published on Tuesday.

Likewise, the Department also approved two share purchase agreements/share subscription agreements (SPAs/SSAs) and nine technology transfer agreements (TTAs). These projects have potential to create as many as 1,363 jobs.

According to the DoI, the number of projects approved in the first five months of the current fiscal year 2024/25 is 319 while there are also 27 SPA/SSAs and 22 TTAs with the potential of creating more than 9,200 jobs.

Total committed investment in this fiscal year has reached Rs. 20.77 billion. About 138 of them were approved through the automated route. The government has established an automated route and one-stop service centre at the DoI with the aim of facilitating foreign and large investors.

The Department informed that of the registered industries, tourism tops the list with 145 projects followed by the Information and Communication Technology at 106. Tourism-related businesses have commitment of Rs. 12.7 billion investment. Likewise, 40 are in the service sector, 22 in manufacturing and five in agriculture and forestry. Only one project is approved in infrastructure sector.

Similarly, service-sector industries have made the commitment of Rs. 4.8 billion investment, manufacturing Rs. 1.81 billion and ICT sector businesses Rs. 678 million.

In the past five months, Rs. 851.6 million has been repatriated from Nepal to other countries in the name of royalty and dividend. The royalty is repatriated in Nepali currency, Indian rupees and US dollars.

According to the DoI statistics, the number of total FDI-based industries in Nepal has reached 6718 with the investment commitment of Rs. 540.53 billion and job creation for 337,514 individuals.

 Published in The Rising Nepal daily on 18 December 2024.   

DPM Paudel urges US investors to invest in Nepal's IT sector

 Kathmandu, Oct. 25

Deputy Prime Minister and Finance Minister of Nepal, Bishnu Prasad Paudel, has urged the US Chamber of Commerce to consider investing in Nepal's information technology (IT) sector.

DPM Paudel made this appeal during a roundtable discussion with US business representatives held in Washington DC, USA on Thursday. He is in the USA to attend the annual meeting of the World Bank Group and International Monetary Fund.

He said to the US businesspersons that compared to other countries, Nepal offers affordable and skilled IT professionals, making it a competitive investment destination, according to the Secretariat of DPM Paudel. Emphasising that recent legal and procedural reforms have fostered a conducive environment for investors, he encouraged US businesses and investors to leverage these opportunities.

Informing the government’s policy to allow companies to set up in the IT sector with minimal capital (just US$ 1) and offering a 50 per cent tax break for the first five years, he appealed for increased US investment in this promising industry.

Speaking at the meeting, Senior Vice-President for South Asia at the US Chamber of Commerce, Atul Keshap, said that dozens of American companies are keen to invest in Nepal. He commended Nepal’s recent investment-related legal reforms, initiation for a sovereign credit rating, and formation of a high-level Economic Reform Advisory Commission, which he said contribute to a positive business climate.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, also highlighted Nepal’s promising investment environment and encouraged American entrepreneurs to expand their businesses in Nepal to reap benefits.

According to a statement issued by the FNCCI on Friday, Dhakal said that in the past three decades, the market growth, duty-free access to developed countries like India, and energy purchase and sale agreements have made Nepal an attractive destination for foreign investors.

He also informed American investors about the immense potential in hydropower due to the 10,000 MW power purchase agreement with India and the recent understanding with Bangladesh.

"Stating that Nepal's blend of nature and culture attracts tourists, President Dhakal invited investors to invest in tourism infrastructure. He highlighted the potential to develop hill stations with a cool and healthy environment within a two-hour distance from the Indian border, which has the world's largest population," read the FNCCI statement.

Representatives from the US Chamber of Commerce attending the event expressed their interest in investing across various sectors in Nepal, including IT, read the statement.

Later on Thursday, DPM Paudel met with IMF Deputy Managing Director Bo Li where he expressed appreciation for the IMF’s support of Nepal’s economic development through concessional loans, policy advice, and capacity-building initiatives. He said that the IMF’s assessments have reflected improvements in Nepal’s economy, and he committed to advancing economic reforms in line with IMF recommendations.

Likewise, DPM Paudel also met with Millennium Challenge Corporation (MCC)'s CEO Alice Albright and Vice-President Cameron Alford. Discussions with them were focused on the latest progress in MCC project implementation in Nepal and possibilities for further financial support.

 Published in The Rising Nepal daily on 26 October 2024. 

FDI inflows fall by a two-thirds in 2022/23

Foreign investment stock reaches 295 billion, India top contributor

 

Kathmandu, Aug. 30

The total Foreign Direct Investment (FDI) stock in Nepal has increased by 11.8 per cent in the Fiscal Year 2022/23  and reached Rs. 295.5 billion but the net FDI inflows to the country has gone down by 67.9 per cent to Rs. 6.0 billion from Rs. 18.6 billion in 2022/23.

Such inflows amounted to Rs. 19.5 billion each in 2021/22 and 2020/21, which were the highest FDI amount received by the country so far. 

Of the total foreign investment received by Nepal in 2022/23, the share of paid-up capital was 52.8 per cent, reserves were 33.7 per cent, and the share of loans was 13.5 per cent, concluded 'Survey Report on Foreign Direct Investment 2079/80' published by the Nepal Rastra Bank (NRB) on Friday.

Similarly, by mid-July 2023, Nepal received FDI from at least 58 countries. Out of them, India is the largest investor with an FDI of Rs.103.45 billion which makes about 35 per cent of the total foreign investment in Nepal. Likewise, Chinese FDI in Nepal stands at Rs. 35.46 billion (12 per cent) while Ireland is in the third position with Rs.22.62 billion (7.7 per cent) investment.

Other top FDI sources for Nepal are Australia Rs. 19.6 billion (6.4 per cent) and Singapore Rs. 18.81 billion (6.4 per cent).

Similarly, the West Indies, South Korea, the United Arab Emirates, the United States of America and Hong Kong are other big contributors.

 

Likewise, 59.7 per cent of the total FDI stock in Nepal is in the industrial sector and 40.2 per cent is in the service sector. Under the industrial sector, 30 per cent of foreign investment is in the hydropower sector and 29.4 per cent is mobilised in the manufacturing sector, read the NRB report.

"Similarly, 26 per cent of the total FDI is in banks and financial institutions and insurance companies under the service sector," it said.

On a provincial basis, Bagmati Province has received the highest FDI in Nepal with about 59.7 per cent FDI mobilised to this province.

The FDI in Gandaki Province is 15.1 per cent, Koshi Province 14.7 per cent, and Madhes Province 8.8 per cent. The FDI in Lumbini, Karnali and Sudurpaschim provinces is less than 1 per cent.

According to the NRB, it has been found that the capacity utilisation of FDI-operated manufacturing companies is 60.69 per cent, while the return on equity is found to be around 11.61 per cent.

 Meanwhile, in line with the global trend, gross FDI inflows decreased by 59.6 per cent to Rs.7.8 billion in 2022/23. The divestment of foreign investment (repatriation of investment) during 2022/23 remained at Rs.1807.3 million which is around 23.3 per cent of gross FDI inflows, informed the report.

To collect necessary data related to FDI and provide assistance in the formulation of necessary policies based on the sectorial situation and trend analysis of such investment, the Department of Economic Research has been publishing annual FDI status reports.

For the survey of the last FY, 238 companies were selected from the institutions established and operated with the FDI. 

Published in The Rising Nepal daily on 31 August 2024.        

Preparations intensify for April investment summit

 Kathmandu, Jan. 26

The Office of the Investment Board, Nepal (OIBN), the national investment promotion and Public-Private Partnership (PPP) agency of Nepal, has speeded up the final preparations for the upcoming Investment Summit 2024.

To update the stakeholders about the initial preparations the Board along with collaborative partner KPMG in India, organised a workshop on ‘Unlocking Nepal's Investment Potential: Collaborative Strategies for Economic Growth, in Kathmandu on Friday. The workshop was held as the pre-event of the Nepal Investment Summit (NIS) 2024 that is proposed to be held on April 28-29 this year.

The workshop delved into enhancing the investment climate in Nepal through legal, procedural and regulatory reforms as well as the innovative approaches to facilitate private investments including Foreign Direct Investment (FDI) to unleash the country's full potential among the policymakers, private sector, development partners and experts.   

Addressing the workshop, Finance Minister and the Vice-Chairperson of IBN, Dr. Prakash Sharan Mahat, said that the country was pursuing fresh investments in every sector of the economy as the country’s potential are largely untapped and under-utilised.

“As green investment has become a buzzword in recent days, there are not any better investment destinations except Nepal as we emit insignificant and carry potential to serve clean and renewable energy to other countries of the region to minimise emissions in line with their targets,” he said.

Dr. Mahat further said, “Similar potentials are long awaiting to be unlocked in the sector of tourism, agri-business and ICT.”

Stating that there is no ceiling for foreign investment in Nepal, he urged the investors, both national and foreign, to tap into the current policies that priorities Foreign Direct Investment and joint venture initiatives.

Vice-Chairperson of the National Planning Commission, Dr. Min Bahadur Shrestha, highlighted that private investments are crucial for the sustainable and inclusive growth trajectory for the irreversible graduation of Nepal to the league of developing countries by 2026.

Likewise, Chief Secretary of the Government of Nepal, Dr. Baikuntha Aryal, underlined the prompt response based on the feedback of the foreign investors investing in Nepal as well as the private sector is crucial to spreading the message among the potential investors that their investments in Nepal won’t be a loss.

Chief Executive Officer of the IBN, Sushil Bhatta, highlighted that NIS 2024 will provide a platform to onboard serious, potential and capable investors in our investment landscape.

“With its serious efforts, the government has been reviewing the various policies and laws to provide a favourable and better investment climate for unleashing Nepal’s full potential in various sectors including the development of strategic infrastructure in different sectors clean transport, road, tourism, ICT, manufacturing and mining among others,” he said.

Similarly, Acting Governor of the Nepal Rastra Bank, Dr. Neelam Dhungana Timsina, shared information regarding the provisions of recently amended FDI and Foreign Loan Bylaws, which removed the provisions of pre-approval of the central bank to bring in FDI.

Yezdi Nagporewalla, CEO of KPMG in India, underscored that the success of this joint effort between IBN and KPMG delivered a commitment to fostering strategic partnerships and driving sustainable growth for Nepal.

Meanwhile, Minister for Foreign Affairs, NP Saud, said that Nepal should do its homework for the upcoming Investment Summit. Addressing the 'Award for Excellence' programme held on Friday in Kathmandu, he pointed out the need to create an investment-friendly environment and said that more homework is needed.

Minister Saud also said that he was also working to speed up economic diplomacy. He added, "Economic diplomacy is important for the success of the conference and we are working for this."

According to him, it is also necessary to explain the reforms in the investment policy to create an investment-friendly environment to attract foreigners.

Minister Saud said that the investors should be assured that the investment made in Nepal could be profitable, and beneficial and that the profits could be reinvested or safely repatriated back to their country.

The upcoming investment summit will be the third one in the recent series of conferences organised to attract foreign investment in large projects. Earlier, investment conferences were held in 2017 and 2019. 

 Published in The Rising Nepal daily on 27 January 2024.     

FM Saud urges American IT companies to invest in Nepal

Kathmandu, Nov. 2

Minister for Foreign Affairs, NP Saud, held virtual and in-person discussions with Nepali American IT professionals and business owners employed in various companies in the United States and other countries.

The discussion held on Wednesday shed light on the progress of the IT sector in Nepal and the contributions of Nepali-American business owners in its development, informed the Embassy of Nepal in Washington DC of the USA.

"The Minister underscored the political stability in Nepal and the government's unwavering commitment to fostering the growth of IT solutions, attracting investments from IT companies to contribute significantly to creation of rewarding jobs and the overall economic development of the nation," read the statement issued by the Embassy.

The Minister also attended a meeting at the US Chamber of Commerce headquarters in Washington, DC where he witnessed the presentation of the Accreditation of the American Chamber of Commerce in Nepal (AmCham) by the US Chamber of Commerce.

Ajit Shah, Founder Chairman of AmCham Nepal, received the accreditation from the Senior Vice President and Head of International Affairs John Murphy of the US Chamber. With this, AmCham Nepal has become the 130^th chapter receiving the US Chamber accreditation.

During the event, Foreign Minister Saud emphasised the need for increased engagement between the private sectors of the two countries. The Minister invited US businesses to explore investment opportunities in Nepal, including in energy, IT, tourism and other priority sectors.

With this accreditation, Nepali private sector has been institutionally connected with the business federation of the world, further strengthening Nepal–US economic linkages, helping to promote trade and investment between the two countries.

Shah shared during the function that AmCham Nepal will organise the first-ever US-Nepal Economic Summit in the first half of 2024 where American businesses around the world will visit Nepal to explore investment and trade opportunities.

According to the Embassy, the function, moderated by Ambassador Atul Keshap, Senior Vice President of the US Chamber, was also attended by the Ambassador of Nepal, Sridhar Khatri and the US Ambassador, Dean Thompson.

Also on the same day, the Minister Saud held a meeting with Senator Chris Van Hollen, during which they discussed the overall context of bilateral relations, emphasizing the importance of exchange between the parliaments.

FM Saud also interacted with the Nepali American business community at the Embassy. During the interaction, he emphasized the government's initiatives to promote investments in Nepal. The Minister responded to a wide array of questions and concerns raised by the participants regarding the investment climate and opportunities in Nepal.

Under Secretary for Civilian Security, Democracy, and Human Rights at the Department of State Uzra Zeya and Senior Director at National Security Council Rear Admiral Eileen Laubacher called on the Minister at the Embassy. 

 Published in The Rising Nepal on 3 November 2023. 

FDI inflow far below targets, commitments

Kathmandu, Sept. 28

Realisation of the Foreign Direct Investment (FDI) in Nepal has remained poor over the years, with just 36.2 per cent net inflow in 27-year period since 1995.

Only in the Fiscal Year 2011/12, the total FDI inflow surpassed the total commitment and reached 128.8 per cent with the commitment of Rs. 8.13 billion and inflow of Rs. 9.19 billion, according to the Survey Report on Foreign Direct Investment in Nepal (2021/22) published by the Nepal Rastra Bank on Wednesday.

Likewise, the inflow was 88.8 per cent in 2016/17 which was the aftermath of the devastating 2015 earthquake that damaged properties worth more than Rs. 600 billion. That year, Nepal received the FDI of Rs. 13.5 billion. But in 2017/18 it went down to just 31.4 per cent with the inflow of Rs. 17.5 billion against the pledge of Rs. 55.7 billion.

Likewise, the largest FDI inflow was received in 2020/21 when Rs. 19.5 billion was channelised into the country. The FDI inflow remained negative in 2000/01, 2001/02 and 2005/06.

Nepal has FDI from 57 countries by the end of the Fiscal Year 2021/22 (mid-July 2022) amounting to Rs. 264.33 billion.

Of the total FDI that the country received, paid-up capital makes 53.7 per cent share, reserve fund 31.7 per cent and loan 14.6 per cent. The FDI stock was increased by about 16 per cent in 2021/22.

According to the report, highest FDI – Rs. 88.59 billion – has come to Nepal from India, followed by China Rs. 33.45 billion, Ireland Rs. 20.90 billion, Singapore Rs. 16.07 billion and St. Kitts and Nevis Rs. 15.09 billion.

St. Kitts and Nevis is a famous tax haven.

Meanwhile, Nepal has remained as one of the countries in the South Asian region that receives a minimal amount of FDI. In 2022, India received US$49.4 billion FDI which is up by 10.3 per cent from 2021. Likewise, Bangladesh received US$ 3.5 billion and Pakistan US$ 1.3 billion while Nepal got only US$ 0.1 billion which is down by 66.8 per cent compared to 2021.

About 62.6 per cent of the FDI, that comes to Nepal, is mobilised in industrial sector, 37.3 per cent in service. However, in terms of industry-wide category, hydroelectricity has received 32.8 per cent of the total industrial sector FDI while banks and financial institutions have got 25.6 per cent of the service sector FDI.

The electricity, gas, steam and air conditioning sector, hydropower sector in particular, in Nepal has been a preferred sector for FDI in recent years. The latest survey shows that 32.8 per cent of FDI stock and 41.8 per cent of total paid-up capital is in this sector, read the report.

Moreover, hydropower sector has also attracted other sources of external financing such as foreign loans in addition to FDI; the electricity, gas, steam and air conditioning sector accounts for 41.4 per cent outstanding foreign loan at the end of 2021/22.

Other sectors that received FDI are accommodation and food services, information and communication, human health and social work, construction and agriculture, forestry and fishing.

Meanwhile, Bagmati Province has received the largest share of the total FDI inflow. It has 55.4 per cent of the total FDI stock with Rs. 146 billion investment. Koshi received 17 per cent (Rs. 45.05 billion), Gandaki 16.8 per cent (Rs. 44.4 billion) and Madhes 8.8 per cent (Rs. 23.3 billion). Karnali has received just Rs. 47 million, 0.02 per cent of the total FDI stock.

According to the report, companies established with the FDI are running at a capacity of 71.1 per cent and their average profit rate is 14.3 per cent.

The NRB had made conclusions on the basis of the survey of 231 companies established with the FDI. The central bank said that it has been preparing and publishing the reports on the FDI to support the government and concerned agencies in better policy formation.

Published in The Rising Nepal daily on 29 September 2023.