Friday, June 17, 2016

Nepal profitable investment destination

While investors keep saying that investing in infrastructure in Nepal is challenging, the central bank governor says that the country is profitable to invest in as there aren’t enough and stringent laws and regulations here.
Not only does Nepal lack mega infrastructure projects, it also doesn’t have stringent laws, which gives enough space for investors, central bank governor Dr Chiranjivi Nepal said at a workshop on ‘Infrastructure Financing: Challenges and Opportunities’ organised jointly by the Confederation of Nepalese Industries (CNI) and Hydroelectric Investment and Development Company Ltd (HIDCL) in Kathmandu today.
Even though the reform process slowdown in the recent years has left some roadblocks for investors interested in mega infrastructure projects, there have been some positive initiatives too, he said, citing the example of the formation of Investment Board Nepal (IBN) which has been following every project closely to facilitate them.
“Investors look for five indicators before putting up their money,” the governor said, naming five indicators as political stability, policy consistency, flexible labour policy, tax policy and inflation rate. The formation of IBN has ensured some sort of policy consistency for foreign investors, he said, adding that Nepal was learning by doing and this could prove to be the best opportunity for investors.
IBN chief executive officer (CEO) Radhesh Pant, on the occasion, said that law alone cannot attract investment. “The laws should be there to gain trust from investors, but the government has to ensure that there is some profit for investors to come to invest in Nepal,” he said, adding that along with the implementation of the projects, policies should also go on improving. “But the government’s commitment and fulfillment of those commitments are a must to build trust on the government.”
Pant said the government must join hands with the private sector for the implementation of the projects as the private sector alone cannot complete the land acquisition and compensation process without the government’s participation.
Likewise, Nabil Bank chief executive officer Sashin Joshi also reiterated that without a guarantee of profit, no investor would ever invest anywhere. “Our neighbouring countries have been courting investors with incentives,” he said, asking why the investors should come to Nepal.
Nepal, he said, needed foreign investment as domestic investment was not enough to fund the infrastructure investment gap that the country faces. “Nepal needs $3 billion every year to develop hydropower alone according to the Millennium Challenge Corporation (MCC report,” he said, adding that Nepal needed $7 billion to achieve the double-digit growth which ensures Nepal’s graduation to the developing country status from the current Least Developed Country (LDC) status. “Thus, Nepal needs foreign investment in infrastructure.”
However, there are various challenges in attracting foreign investment in infrastructure.
According to member of the Infrastructure Cell of CNI Ashish Garg, Nepal needs to be in the investment radar with better credit ratings and investment protection. “Nepal also needs to develop a sustainable foreign-exchange management regime apart from simplifying the approval process by delivering a one-desk policy,” he said, adding that an enabling environment, establishment of a dedicated banking system, and building trust between the government and the private sectors are some of the way forward.
Likewise, advocate Gandhi Pandit urged the government to amend the laws to help promote project financing and attract institutional investors to Nepal.
Participants, on the occasion, also dwelt on various legal and procedural problems in project financing and how to simplify them.

6 comments:

Unknown said...


Hi Nice Blog !!!
Thanks For Providing Best Info About Prestige Song Of The South is the perfect place for anyone to live a quality lifestyle as this township offers all spaciously crafted living spaces. Each resident will have a great living experience by all the modern facilities available in Prestige Song of the South.

Sk Sharma said...

Thanks for your information on this blog Brigade 7 Gardens

Poojita Propladder said...

Your selection of topic is very good and also well written. Thanks for sharing. I feel like all your ideas are incredible! Great job!!!
I have some information about:
Brigade Citadel
Salarpuria Sattva Magnus
Ambience Courtyard
Brigade Citadel Hyderabad

urbanrisetalkofhyderabad.com said...

Hurry up with your plans towards Urbanrise on Cloud 33 luxury apparments starting @5999sq.ft with exiting enimities and eye feesting views near bathupally.Creating with world class facilities 2,3&4 luxury appartments including with 8500sq.ft moderenised clubhouse,extrodinory roof top amenities and sky lounges.Urbanrise on Cloud 33 project welcomes you with a beautiful landscapes all around the project with 1.5 acres of open space and greenary.
Urbanriseoncloud33hyd.com

urbanrisetalkofhyderabad.com said...

Express your individuality at ''Urbanrise on cloud 33''.Coming with an affordable prices comparitively in batchupally.Urbanrise on cloud 33 project welcomes you with a spacious 9.15 acres of land with latest moderenized cloud house.Total 2600 Units (5 towers with 33 floors each).A spacious 2bhk,3bhk,4bhks with only rs 6350 per Sft.Blending relaxation & sopihisticated to create the ideal place and experience the stunning amineties.
Urbanriseoncloud33hyd.com

urbanrisetalkofhyderabad.com said...

Urbanrise On Cloud 33 launched the featured residential appartments at batchupally,Hyderabad.Welcoming you with 2bhk,3bhk&4bhks with perfect vasthu.Urbanrise On Cloud 33 are commited to expirence with the lavish animeties and 53,0000 s.ft clubhouse.pricing starting from Rs 62 lacs only.Urbanrise On Cloud 33 project was connected to all the major facilities with in 5 mins away from you.Total project held up with 9.15 acre large space ,5 towers in it.
Urban Rise on cloud 33 hyd.com