Vital Investment Summit
With the country attaining political stability, it is bracing for economic transformation. Decades of political instability had vitiated the country’s vitality to deliver public goods and maintain good governance. Frequent changes of government had negative repercussions on policy formulation and implementation. The policy inconsistency was a major factor to dissuade the potential investors. Now there is the policy stability essential for smooth implementation of the big projects. The country badly needs the huge foreign investment to push for major infrastructure development such as constructing hydropower plants, transmission lines, roads, bridges, railways and industries, among others. Despite the abundant natural resources, the country still lacks necessary capital and sophisticated technology. So the successive government has called on domestic and foreign investors to pour their money in Nepal’s development. In order to attract more foreign investors, Nepal is going to organise second investment summit in January or February of next year. Similar summit was held in 2017 but the objectives of the summit could not materialise for various reasons. The second summit seeks to realise the foreign investment intent shown of the investors in 2017.
The Investment Board of Nepal (IBN) that is organising the gathering of investors is working in close coordination with the National Planning Commission, concerned ministries, provincial governments and private sector to explore the suitable projects for the potential investors. Authorities at the IBN claim that they have identified bankable projects from provinces. In 2017, many investors were not much excited owing to the lack of good projects that could rack up desired profit and create new jobs. The lackadaisical situation was owing to the absence of proper coordination between the concerned ministries. Now this condition must end as the harmonious professional relations among the line agencies is necessary to smooth out the cumbersome bureaucratic procedures. Many investors were discouraged as they failed to receive desired support from the government mechanisms.
Now that the IBN has documented a number of projects as well as made progress in feasibility of large projects like luxury resort, sports and health city and hydroelectricity, the potential investors should no longer worry about the lucrative areas of investment. During the first investment, investors from China, Bangladesh, Japan, the United Kingdom and India had jointly pledged to pump in FDI of about USD 14 billion that exceed the government’s expectation of Rs 100 billion. They had shown interest in investing in the fields of hydroelectricity, airport, highway, mining, food, tourism, manufacturing, solar energy, steel plant and construction. It is widely believed that the investment summit is considered as instrument to boost the confidence of foreign investors. They get familiarised with the political, bureaucratic, legal and infrastructural statute of the given country. The upcoming summit is vital to generate investment friendly atmosphere in the country that is in the dire need of money to fuel economic growth and ensure prosperity. This summit is also important as it is going to happen after Nepal has taken a clear federal shape. The three-tie government requires huge money to meet their development aspiration. Thus, it is imperative for all to make the summit a success so as to achieve the overarching goals of stability, enduring peace and inclusive growth.