Nepal investment summit 2019 

                                                

Slogans on one hand and the ground reality. Is it that milestone which it has been projected as such or is it the other way opposite . My opinion

With a decade long civil war and polictical transition coming to its long awaited end Nepal has now got its own constitution and a stable government.

The main agenda is now sustainable and accelerated economic development.

And the investment summit tends to highlight the same issue and encourage foreign investment in nepal

There is no doubt that foreign investment is vital for a country like nepal who is dreaming of the economic growth where domestic capital is not enough. And it is a positive step in that direction to have a summit like this . But the ground reality points that it is just a spark which be nothing if not turned to flame. Summit is not the actual initiative.

Why would a foreign investor want to invest in any country? Coz he wants good return and sense of security of his investment. Nepal has still got to do it homework clearly and properly if it wants to attract heavy investment.

Ease of doing business should be massively improved. Laws and regulations should be investment friendly.

Tax laws should be simplified and should tend to promote investments. Infrastructure should be adequate. Nepal should come forward with clear cut policies in this respect. And one of the major decision that should be taken is the specification of sectors that shall be kept open for the foreign investment.

In my opinion foreign investment should be allowed in mega capital projects like hydropower, infrastructure, vehicles and machinery mfg companies, education, health, banking and finance ,technology, agro technology are the major possible sectors. These sectors require huge capital investment which can be acheived form foreign investment. Foreign investment on small sectors where domestic investors are working should be avoided because it could adversely affect the competitiveness and opportunities for our own investors.

Some of those sectors are Reatail sectors , hotel and restaurants, small and medium manufacturing sectors, shoes industry, construction material mfg sector, agriculture. Sectors where nepal is moving towards self sufficiency should be kept away from the per-view of FI, coz engagement of foreing investors on those sectors could kill our own businesses and prospects of our own investor. One thing shall be always kept in mind that we should also constantly move towards building our own domestic investments in the country in long run . We should not for always tend to rely on foreign investments and rather encourage entrepreneurship among our own people. 

In order to attract FDI building procedural and infrastructural ease is one important requirement and parallel to it different tax incentives whether in the form of tax exemptions for certain period or tax holiday or other similar progressive and welcoming tax laws should be made.