Nepal virgin land for investment: PM Oli

KATHMANDU, April 6: Prime Minister KP Sharma Oli, who is currently on the State Visit to India, said that Nepal is a virgin land as far as the investment is concerned. Investment in any sector is highly profitable. There is no competition for investment.

Making closing remarks at the Business Interactive Roundtable in New Delhi Friday, PM Oli said, Indian investors have invested across the globe so why not to go to the next door Nepal, he exhorted the businessmen. Geographical proximity, easy access, cultural similarities are all there to make the investors feel good about Nepal.

Issuing a press statement Friday evening, the Nepali Embassy in India mentioned that the PM urged the Indian business community to seize the opportunity.

PM Oli underscored that the investors always look for markets. For Nepal, market is not a problem. Production is a problem.

He further informed the foreign investors, “We enjoy duty free quota free market access in our neighborhood. In addition, we enjoy duty free access to European market and preferential market into the USA for over 70 products as an LDC. We are committed to further improving business climate in the country.”

Reform is always desirable. Nepal has enacted the laws and policies on foreign investment, Public-Private Partnership, industrial enterprises, banking and intellectual property. Come and talk to our authorities, the PM appealed.

According to him, Nepal is committed to liberal economic policy with private sector as a key partner. It has no intention to reverse the trends. Rest assured, Nepal cannot go against the global trends. Compared to other countries, Nepal’s incentive structure is quite attractive. It has reduced tariffs, simplified tax regimes and focused on the development and operation of trade related infrastructure.

PM Oli also shared the plan that Nepal was to establish SEZ in major industrial centers mostly in cities bordering India with incentives for industries including liberal labor law.

It has established a high-powered investment board headed by prime Minister that brings together government and private sector, he said, adding that it is facilitating the big investors by providing all services from single window.

Favorable fiscal environment with low tax slabs, no income tax on dividends and export earnings, exemption of tax and tax holidays for certain industries, exemption of duty and fees on the key inputs used by an export Industry were also informed to the business community of India.

The PM made aware that Double Taxation Avoidance Agreement was signed with India, while the new version of bilateral investment agreement was being discussed.

“Top priority of Nepal government is cross border infrastructures for better connectivity. Modern ICP at Birgunj is operating soon. ICPs at three other places are being built and railway connectivity is being established at 5 border points,” he mentioned.

Almost every sectors including manufacturing, hydropower, IT, mining and agro based industries are opened for foreign investment. It is quite a liberal regime.

Moreover, the PM reminded that Power Trade Agreement with India has been signed. Nepal, India both can benefit from utilization of hydropower resources. Cross border transmission lines are operational and Nepal was going to build new transmission lines.

Another attractive sector, as the PM argued, is tourism in Nepal. There are many things that Nepal can offer. It is a tourist paradise.

Also, the PM during the remarks, said IBN is facilitating the big Indian investments in Arun-3 and Upper Karnali. Nepal was able to receive a pledge of 14 billion dollars in Investment Summit organized in Kathmandu last year. RSS