Stable government, investment-friendly environment a must: German envoy

Stable government, investment-friendly environment and long-tem foreign investment policy are prerequisites to attract more foreign investment, according to a diplomat.

"Nepal still has no stable government, no skilled labour and industrial peace, apart from Constitution writing process that has not ended," said German ambassador to Nepal Frank Meyke talking to Confederation of Nepalese Industries (CNI) president Narendra Kumar Basnyat at his office.

The political parties have to seriously take these issues and join hands with the private sector to boost confidence of foreign investors, he said, adding that the private sector should take a lead and help create conducive environment for investment.

Seeking the envoy's help in spreading the message that Nepal is an investment destination Basnyat, on the occasion, informed Meyke that the country has improved investment-climate. "The private sector is also slowly gaining confidence," he added.

The private sectors of both the countries should reach out to each other and expand bilateral trade and economic relations, he said, adding that both the countries have age old socio-economic relation and that needs to be further expanded. "German investors should invest more in Nepal and help boost Nepal's export to Germany."

Nepal is suffering trade deficit of around half billion rupees with Germany, according to the Trade and Export Promotion Centre (TEPC) figures.

Nepal's export to Germany – the third largest export destination of Nepal – has decreased to Rs 2.76 billion in the fiscal year 2012-13 from a fiscal year ago's Rs 2.96 billion, the data revealed. "In the last fiscal year 2012-13, Nepal imported Rs 3.21 billion worth merchandise from Germany, whereas a fiscal year ago in 2011-12, Nepal's import stood at Rs 2.56 billion only."