Monday, March 4, 2019

NRNs urges to introduce open, non-restrictive investment law

The Non-Resident Nepali Association (NRNA) has asked the government to make foreign investment law more open, competitive and attractive compared to other countries in Asia in a bid to lure foreign direct investment (FDI).
AS he government has tabled Foreign Investment and Technology Transfer (FITTA) amendment Bill at the House, the Nepal Policy Institute (NPI) – a global initiative of NRNA – has recommended the government not to make restrictive law rather draft laws that could encourage more investment.
"Nepali diaspora and people of Nepali-origin should be treated equally in matters related to investment," chairman of NPI Khagendra Raj Dhakal, said adding that the policy should allow NRNs to make investments with 100 per cent ownership of enterprises. "Likewise, the government should leave small and medium enterprise (SMEs) sector open for FDI to improve domestic employment, balance of payments situation and give a sense of economic security."
Citing that a long negative list for investment will directly affect FDI, the Institute has said such restrictions must be removed. "Investments should not be restricted in sectors other than those related to national security and defence."
The NPI has also asked the government not to expropriate or confiscate foreign owned enterprises through administrative measures. "The foreign investors should be allowed to repatriate foreign currency investment, profit from investment and principal of loan obtained during course of business operations," the Institute's recommendation reads, adding that other issues regarding import exemption on machinery, equipment, plants and advanced technology required to establish enterprises, allowing settlement of disputes to be conducted in foreign land, effective monitoring and implementing mechanism of policies are also crucial for FDI.

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