Finance Minister Dr Yubaraj Khatiwada has invited businesspeople to invest in Nepal as the country has created business friendly environment. Giving examples that all the foreign firms operating in Nepal have been making up to 25 per cent return on equity (RoE) against the global average of 10 per cent, he said that Nepal is a better option for investors.
Speaking at a session during the Nepal Infrastructure Summit 2019, the finance minister also informed that Nepal is in the process of conducting sovereign credit rating to facilitate businesses in the country. However, he acknowledged that the government has not been able to give due priority to the infrastructure sector due to lack of enough resources as the incumbent government also has bigger responsibility of ensuring social security of citizens.
“The Constitution has guaranteed more than 30 fundamental rights to the people and majority of them are related to social security,” he said, adding that the government also has to ensure availability of resources – administrative – to all 761 governments across the country. “The government is, therefore, promoting the support and investment from the private sector for desired economic goals and development aspirations of the country.”
Ample investment in the infrastructure, including roadways, railways, airways and the tourism infrastructure, will ensure easy entry of the private sector in the development process, he added. “Along with this, the government is seeking private sector’s support also to diversify and minimise risks.”
According to Khatiwada, a few infrastructure projects could also be operated in business model to attract private sector’s investment.
Likewise, former chief executive officer of Investment Board Nepal (IBN) Radesh Panta said that the country today needs quality investment for which the government should ensure necessary subsidy packages and coordination with investors.
World Bank vice president Jingdong Huo, on the occasion, said that the multilateral development partner has been contributing the private sector-oriented economic development in Nepal. According to Huo, the World Bank has been operating 25 projects in Nepal at present, while $2.6 billion worth of new projects have been initiated in Nepal recently. “The majority of economic indicators of Nepal today are satisfactory,” he added.
Likewise, chief executive officer of NMB Bank Sunil KC informed that banks have been investing almost 20 per cent of their loan portfolio in the infrastructure sector. “Of the total, majority of the investment is in hydropower and renewable energy,” KC added.
Though Nepal needs huge investment to achieve targeted economic growth rate, he lamented that the financial sector is often witnessing the crunch of loanable funds. “In such a context,” he urged the government to facilitate banks to bring in funds from offshore markets.
On the occasion, president of Institute of Chartered Accountants of Nepal (ICAN), Krishna Acharya said that ‘accountability’ is the primary challenge facing the country at present. He also highlighted the necessity of effective coordination between the government, private sector and the financial sector for development of infrastructure in Nepal.
Speaking at a session during the Nepal Infrastructure Summit 2019, the finance minister also informed that Nepal is in the process of conducting sovereign credit rating to facilitate businesses in the country. However, he acknowledged that the government has not been able to give due priority to the infrastructure sector due to lack of enough resources as the incumbent government also has bigger responsibility of ensuring social security of citizens.
“The Constitution has guaranteed more than 30 fundamental rights to the people and majority of them are related to social security,” he said, adding that the government also has to ensure availability of resources – administrative – to all 761 governments across the country. “The government is, therefore, promoting the support and investment from the private sector for desired economic goals and development aspirations of the country.”
Ample investment in the infrastructure, including roadways, railways, airways and the tourism infrastructure, will ensure easy entry of the private sector in the development process, he added. “Along with this, the government is seeking private sector’s support also to diversify and minimise risks.”
According to Khatiwada, a few infrastructure projects could also be operated in business model to attract private sector’s investment.
Likewise, former chief executive officer of Investment Board Nepal (IBN) Radesh Panta said that the country today needs quality investment for which the government should ensure necessary subsidy packages and coordination with investors.
World Bank vice president Jingdong Huo, on the occasion, said that the multilateral development partner has been contributing the private sector-oriented economic development in Nepal. According to Huo, the World Bank has been operating 25 projects in Nepal at present, while $2.6 billion worth of new projects have been initiated in Nepal recently. “The majority of economic indicators of Nepal today are satisfactory,” he added.
Likewise, chief executive officer of NMB Bank Sunil KC informed that banks have been investing almost 20 per cent of their loan portfolio in the infrastructure sector. “Of the total, majority of the investment is in hydropower and renewable energy,” KC added.
Though Nepal needs huge investment to achieve targeted economic growth rate, he lamented that the financial sector is often witnessing the crunch of loanable funds. “In such a context,” he urged the government to facilitate banks to bring in funds from offshore markets.
On the occasion, president of Institute of Chartered Accountants of Nepal (ICAN), Krishna Acharya said that ‘accountability’ is the primary challenge facing the country at present. He also highlighted the necessity of effective coordination between the government, private sector and the financial sector for development of infrastructure in Nepal.
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