The visiting experts and
investors in the Nepal Economic Summit have shown their interest in investing
in hydropower sector. However, they have urged the government to improve the
business climate of the country.
Nepal needs to introduce number
of reforms to improve country's doing business indicators, they said,
suggesting to reduce lengthy documentation process and improve bureaucracy to
attract more foreign investment.
Lengthy documentation has
reappealed the investors, said vice-chairman of Standard Chartered Bank for
Asia Thomas Harris, speaking at a session in the second day of the Nepal
Economic Summit 2014 here today,
documentation process of 14 days
for export/import in Nepal is the longest in South Asia, he said, citing reforms
undertaken by the Philippines in recent years. "Reform in administrative
process will help bring in foreign direct investment."
Nepal is ranked 105th in Doing
Business 2014 report, down from last year´s position of 103. Easing the doing
business will help attract more investment in Nepal, Harris added.
Likewise, global investment
promotion specialist at World Bank, USA, Robert Whyte, on the occasion,
suggested Nepal government to be serious toward investors. "The government
officials should reduce consignment import and export costs paid for processes
and public offices apart from removing the provision of going around seven to
eight ministries for license to start business in the country," he added.
As Nepal ranks second last in the
list of South Asian countries, after Bhutan, in terms of Foreign Direct Investment
(FDI), clear policy and strong regulatory body will drive foreign investment,
said president of Non-Resident Nepali Association Sesh Ghale. Urging to create investment
friendly environment in the country, he said that lack of clear policy and
regulatory body for foreign direct investment coupled with business-unfriendly
bureaucracy have driving foreign investors away
Foreign Investment and Technology
Transfer Policy of 1992 is outdated and it needs immediate revision,” Ghale
added.
Former finance secretary Rameswor Khanal, on the occasion, prescribed a gamut of reforms like simplifying process to register businesses to process of liquidation of businesses.
Former finance secretary Rameswor Khanal, on the occasion, prescribed a gamut of reforms like simplifying process to register businesses to process of liquidation of businesses.
Likewise, experts also discussed
on government's failure in commercialisation of agriculture sector due to small
landholdings, system of inheritance that have fuelled land fragmentation in
recent years.
Average landholding of a Nepalis is
0.68 hectare, which is small for the commercialisation of agriculture, the
experts said, adding that the sector needs more attention as some 77 per cent
of the total population is dependent on agriculture.
Executive chairman of South Asia
Watch on Trade Economics and Environment (SAWTEE) Dr Posh Raj Pandey asked the
government to emphasise on strong implementation of policies while
commercialising agriculture
The stakeholders including government,
farmers, trading and cooperative organisations and other private sector players
must go hand in hand to strengthen the agricultural sector in a unified manner,
he suggested
Agriculture growth rate of
Nepal during 2008-12 stood at 4.06 per cent, whereas in Pakistan it was 2.20
per cent, 2.80 per cent in India and 4.14 per cent in Bangladesh.The expert panel also stressed on infrastructure, market, technology and information – that play a pivotal role in boosting agriculture – to commercialise the sector.
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