Experts hope enhanced flow of capital from Investment Summit
By A Staff Reporter
Kathmandu, Mar. 17: Foreign Affairs advisor to Prime Minister KP Sharma Oli Dr. Rajan Bhattarai said that the Nepal Investment Summit 2019 will be a success to create an optimistic new environment for investment in Nepal.
The Nepal Investment Summit 2019 is scheduled to be held this month on March 29-30 in Kathmandu.
“We hope that the investment commitment from the foreign investors will be more than the government’s expectations. The government has presented a projection of Rs 300 billion investment commitment from the summit,” Dr Bhattarai said while speaking at interaction here on Saturday.
He said that this investment summit is relevant from political aspect also because the county is moving towards economic prosperity after the settlement of political issues.
“The Summit is necessary for us because we need more investment to fulfill our objectives of making the country prosperous,” Dr. Bhattarai said.
He said that foreign investment, capital and knowledge all are essential to empower the country through use of capital, knowledge and technology.
The government is effortful to attract more foreign investment as per the country’s needs, he said, adding that the government would attract both domestic and foreign investors for the country’s economic development.
“The preparations for the Investment Summit are at final phase. Around 400 participants have confirmed for their participation in the Summit till the date. The representatives of 38 to 40 countries will participate in the Summit,” he said.
He said that the Foreign Ministers from France and Myanmar will participate in the Summit.
Former Vice-Chairman of National Planning Commission (NPC) Dr. Shankar Sharma, however, said that flow of foreign investment in Nepal is not satisfactory.
“The foreign investment component at present stands at only 0.5 per cent to the GDP and it is less than the 2 US dollar per person,” he said.
He stressed on the need of creating competitive investment milieu for bringing more foreign investment in the country.
“Historically speaking, we are ahead of India to open door for foreign investment. But, the progress is not impressive”, Dr. Sharma said.
He, however, said that it is a good time to attract more foreign investment as political stability was already created in the country.
Dr. Sharma also suggested for the government that it should bring budget of Rs. 1,500 billion annually to meet 9 to 10 per cent economic growth.
For this, Nepal should manage fund of Rs. 700 billion internally and at least Rs. 800 billion as foreign investment, he said.
Former Governor of the Nepal Rastra Bank and former NPC Vice-Chairman Deependra Bahadur Kshetry stressed on the need to increase the capital expenditure in the budget.
He said that the government and the concerned bodies should focus on implementing the policies and act properly for creating investment climate in the country.
Former Finance Secretary and Former Chief Executive Officer of National Reconstruction Authority Yubaraj Bhusal said that foreign investment is required for the overall development of Nepal.
He cautioned that effectiveness of budgetary expenditure in the country is not satisfactory and it has to be corrected.
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