Shesh Ghale re-elected as NRNA president

Shesh Ghale has been today elected as the president of Non-Resident Nepalese Association (NRNA) with an overwhelming majority for the second term.
He secured 867 votes – out of the total 1,089 votes – while his contender TB Karki garnered just 226 votes.
Likewise, Bhawan Bhatta has been elected as the vice president securing 538 votes. His contender Kumar Pandey secured 513 votes. Dr Badri KC with 555 votes has been elected as the general secretary and Hitmat Thapa with 264 votes as treasurer of the NRNA for next two-year term.
The reelected president of the NRNA Ghale is constructing a five-star hotel in Kathmandu. Prime Minister Sushil Koirala had laid foundation stone of the 17-storey five-star Sheraton Kathmandu Hotel last October. The hotel is being built with an investment of Rs 8 billion. The hotel, which is expected to come into operation in February 2018, is being built by MIT Group Holdings Nepal, a member of the Ghale Group of Companies, which has diverse businesses in Australia and other countries too.
Ghale has also been appointed Nepal's special envoy for reconstruction in the aftermath of the devastating earthquakes of April 25 that floored down thousands of houses, infrastructures and heritage sites, apartfrom loss of lives.

NRNs failed Nepal in the time of crisis

The Non-Resident Nepalis (NRNs) from 71 countries, who have gathered in Kathmandu for 7th Global Conference, have committed to work for reconstruction.
It is praiseworthy. However, while they are preparing for global conference, Nepal is under India’s ‘unofficial blockade’. The lives of Nepalis have been hit hard by the shortage of essential goods, including petroleum products, and even medicine in some parts of the country. In the current situation of humanitarian crisis, the NRNs have failed their motherland, in their own words.
“We discussed Nepal’s current issues in the meeting of International Coordination Council (ICC),” said Non-Resident Nepalis Association (NRNA) vice president Bhawan Bhatta.
The NRNs, who have resources and network across the globe, apart from their formal institution in 71 countries, have failed to prove that they really care for their motherland. They have been repeatedly claiming that the country can use their expertise and network for the benefit of Nepal, if the government award them citizenship. The new constitution of the country – that has become the key reason for the current unofficial blockade by India – has given NRNs the right to get special citizenship. The NRNs have welcomed the provision, but failed to help the country at this critical juncture.
However, Bhatta said that the NRNs raised the issue of current crisis in the ICC meeting. “Majority of the NRNs feel that they have to internationalise the current crisis,” he said, adding that they had also planned a symbolic programme in all the 71 countries at the same time and on the same date. “But the ICC meeting did not endorse the agenda.”
However, Japan National Coordination Council (NCC) – in Bhatta's leadership – organised a symbolic programme in Tokyo.
After Nepal promulgated new constitution with 90 per cent majority on September 20, India has stopped movement of cargo trucks at its border points, blaming the protests Tarai-Madhesh districts. Nepal is not only landlocked, but also India-locked as the country is surrounded by India in the east, west and south. The behaviour of New Delhi with a small country like Nepal has not only affected lives of Nepalis but also left bordering Indian markets deserted.
Nepal Oil Corporation (NOC) – the state-owned oil monopoly – has been rationing petroleum products to manage the situation. Because of the Indian blockade and shortage of petroleum products, the country is going to lose more than what it lost from the devastating earthquake in April and May. Schools and industries have been shut down, and long queues have been formed at handful of pumps distributing fuel. The blockade has dealt severe blow on the already shattered Nepali economy.
Though NRNA has been involved in various activities under its charity programme, including the plan to rebuild 1,000 houses for earthquake victims within two years, it has to come up to help the country in situation like this.
The NRNA General Assembly and Global Conference that is being held in Kathmandu from October 14 to 17 is going to see around 1,500 delegates from various countries. The conference is also going to elect a new executive committee for a two-year term. But the conference will also have to come up with clear and concrete plans, apart from reconstruction and rebuilding, to help their motherland at this critical time. Because its their turn to help Nepal.

NRNs plan five-star hotel, start BB Airways

A Non-resident Nepali (NRN) Shesh Ghale announced that MIT Holdings will start a five-star hotel in Nepal, whereas another NRN Bhawan Bhatta — chairman of BB Airways and treasurer of NRN Association — announced the inaugural flight of BB Airways from today to Kuala Lumpur, during the NRN Day celebration here today.

"We are negotiating with an international hotel chain that will be finalised in a week," said chairman of MIT Holdings Ghale, adding that the company will invest around Aus$75-Aus$80 million as foreign direct investment from Australia for the project that will start within a year.

The holding company has already bought land near the earlier royal palace and will start construction within a year, he informed. "It will take another three years to complete the construction and the five-star hotel will come into operation by 2017."

Similarly, Bhatta announced the start of scheduled flights of BB Airways to Kuala Lumpur. "Soon, the airlines will fly to Hong Kong and in a month, it will start scheduled flights to Japan," he said.

BB Airways, with an initial capital of Rs 500 million, is a Rs 4 billion company promoted by NRNs.

NRNs want to see a peaceful and prosperous Nepal, said founding president of NRNA Dr Upendra Mahato, addressing the NRN Day. "It is a pride to be a poor citizen of a rich country than to be a rich citizen of a poor country," he said, adding that the government has failed to utilise the remittance and skills of migrant Nepalis.

Migration is a short-term phenomenon and remittance can be a cushion for the time being only, but in the long term there is no alternative to creating employment in the country, said president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya, on the occasion.

Nepal is not a poor country, it's only our mentality that is poor as the country offers huge potential that needs to be exploited, he said, asking NRNs to invest and help generate employment in the country.

He was of the opinion that political instability and labour problems could create some problems, but Nepal still is a fertile ground for investment as compared to other countries.

Nepalis have been able to achieve a lot abroad, said care taker prime minister Dr Baburam Bhattarai, asking them to replicate the success story in the country.

Realising the weakness in governance and bureaucracy, he said that the government has failed to create conducive business environment, investment-friendly environment and investor-friendly bureaucracy. "Otherwise how can Nepalis, who have been contributing to foreign economies fail in their own country," he asked, adding that the country cannot achieve double-digit growth without foreign investment and technology.

NRNs register investment company in Nepal

Non-Resident Nepalese Association (NRNA) has registered NRN Investment Ltd to promote investment in Nepal.

"NRN Investment Ltd has been registered in Kathmandu under the Company Act 2063,” informed NRNA president and chair of Task Force — that has been formed to promote investment in Nepal under a collective investment programme — Jiba Lamichhane during the sixth meeting of the Taskforce held on September 22.

The company has also opened accounts in three A-class commercial banks for funds transfer,” he said, welcoming all the participants to deposit the fund by November 30.

The collective investment programme has been delayed due to delay in registering the company in Nepal.

There are nine founding members from the International Executive Secretariat (IES) of NRNA and Promotion of Investment in Nepal taskforce members including Jiba Limichhane (Russia), Rameshwar Shah (UAE), Tenzi Sherpa (South Korea), TB Karki (Qatar) and Bhaban Bhatta (Japan).

Similarly, task force includes Shesh Ghale (Australia), Krishna Pandey (Hongkong), Kumar Pant (Germany) and Mahesh Shrestha (Japan).

Lamichhane, on the occasion, requested all taskforce members to actively disseminate information on the project. The meeting also discussed on double taxation, eligibility of the investors and holding collective investment interaction programme in different countries.

Regional coordinator of Americas and an expert on international taxation Mukesh Singh, on the occasion, informed that taxation treaty between USA and Nepal was underway and the best remedy was to incorporate a new company amongst the interested investors in USA and invest through the company, if they were interested in repatriation of their investment and profit but if could not invest individually.

Some investors including NRNA-NCC USA president Prahlad KC asked whether interested investors could invest even after the deadline.

Nepal offers huge investment potential

Two successful investors — former president of Non-Resident Nepali Association (NRNA) Upendra Mahato and Ncell's chief financial officer Tommi Holopainen — shared their experiences and encouraged the private sector delegation from the 20 Asia-Pacific nations to take risk, courage and find local partners to invest in Nepal. They mentioned that the time was opportune and the country offers huge potential in every sector as it has just started its journey towards economic development.

"Every sector in Nepal has huge potential," said Mahato, addressing the session 'Investment Opportunities in Nepal', during the 26th conference of the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) here in the valley today.

"There are difficulties in doing business in every country around the world," he said, adding that it is, however, easier to invest in Nepal compared to other nations.

This conference will help place Nepal in the business map of Asia and the Pacific, said Mahato, who lives in Russia but has invested in Nepal. “However, don't go for a quick-fix solution and allocate enough funds for building the capacity of local human resources for a long-term business prospective," he suggested.

Holopainen, on the occasion, shared Ncell's experience in investing in Nepal, as the company has invested over $500 million in the last four years. "We have started to repatriate dividends to our parent company," he shared.

The country has simplified the dividend repatriation process, various tax and customs tariff, and industrial policy besides forming the Investment Board as a one-window shop to make it easier for investors, said economic advisor to the prime minister Rameshwor Khanal, outlining the investment potential in Nepal.

"Hydropower, tourism, infrastructure — airports, roads, industrial corridor — agriculture, health, education, mining, and IT/BPO are some of the potential sectors that foreign investors can look at," he said, informing the delegation about the government's preparation for 50 mega projects soon.

The meeting with a slogan ‘A Vision for Shared Prosperity’ has seen private sector representatives of — who are eager to share opportunities and collaborate — the Asia-Pacific region.

The march towards prosperity will not be possible without the private sector as the locus of growth, said caretaker prime minister Dr Baburam Bhattarai addressing the session.

Nepal is indeed striving for an economic revolution and "I believe that the private sector, with its managerial, financial, and technical prowess, is the best catalyst to move the agenda forward," he said, adding that the government is committed to ensuring that investors are provided the best investment climate that yields the highest returns with minimal costs and efficient service delivery.

Chairing the session, president of Federation of Nepalese Chambers of Commerce and Industry — the organiser of the conference — Suraj Vaidya urged the visitors to make best use of their visit and forge collaborations with Nepali businesses.

Similarly, addressing the session, 'Asia in the Global Economy', finance secretary Krishna Hari Baskota also said that the government has taken various policy measures to attract foreign investment to Nepal.

 

Hydropower is key

Asia is moving forward rapidly but all Asian nations must be on the same train. However, the growth model needs change and high growth economies should leave room for lesser ones to have inclusive growth in the region. The world has become competitive and countries are moving fast but Nepal is standing still. It needs a strong leadership that keeps pushing for key programmes for growth. Hydropower development is key to attract foreign direct investment. There is no dearth of funds but lack of determination and consistency in policy are constraints. After the country has enough power, more FDI will flow into Nepal as the country offers cheap labour and energy. Nepal should join hands with India and China, and compliment their growth with more power generation.

— Dr Supachhai Panitchpakdi, UNCTAD-secretary general

Concentrated approach key

Nepal should concentrate in one area that it thinks is key without being distracted in many areas. If one tries many things, it will be difficult to achieve anything. Nepal should identify one priority industry where it wants investments. For example, it can develop itself as a tourism hub with its serene beauty and offer a global shopping experience concentrating in service and retail trade. However, the government needs to assure the security of investments and increase the domestic private sector's confidence as they can invite foreign partners. Such a conference will help Nepal get international exposure and network with prospective investors. — KK Modi, CACCI-president emeritus

International exposure key

World Chambers Federation is present in 140 countries with 15,000 members around the globe. It helps organise chambers and works parallel to the International Chamber of Commerce. After the 2008 economic crisis, the weight has shifted to the Asia-Pacific nations as the region's consumers are going to be the key. There needs to be more cooperation in the region unlike the current confrontation. CACCI helps the private sector share information and increase cooperation between them. Nepal has to take advantage of its geographic location and attend more transnational conferences to be part of the international business community. Opening up the economy to the outer world will help Nepal invite foreign investment in the long run. — Rona Yircali, World Chambers Federation-chairman

Institutional reform key

After the collapse of the USSR, Georgia was also in a poor shape as we lost our market. But in the last eight years, we have concentrated in institutional reforms and today Georgia is a more firm economy and we are expanding our businesses. Nepal can also learn and take advantage from the Georgian experience and concentrate in institutional reform that is key to success. Good will and wish of the leadership can make investments look attractive. Domestic investment is also key to attracting foreign investment. Georgians like mountains and more of them could be attracted to Nepal. Nepal, which is placed in between the two rising economies of Asia, should take advantage from the huge markets across the borders. — Jemal Inaishvili, Georgian Chamber of Commerce-board member

More information key

CACCI is important as it represents significant business people from the Asia-Pacific region. We can rely on our sister organisations and exchange information to expand our businesses, establish contacts, and promote investment and cooperation as it is a networking opportunity. There is a huge lack of information in Russia about the investment opportunities in Nepal. This conference has provided solid ground for Russians to understand Nepal. Chamber of Commerce and Industry of the Russian Federation signed a memorandum of understanding with FNCCI last year and is working in partnership with Russia-Nepal Chambers of Commerce, besides Non Resident Nepalis, to promote cooperation. The sister chambers are now facilitating and more business people are coming to Nepal to look for opportunities in hydropower, road infrastructure and cement factories. — Tatiana V Legchilina, Chamber of Commerce and Industry of the Russian Federation, International Cooperation Department-deputy director

Nepal fails to tap Russian investment

Nepal has failed to tap Russian investors, according to former president of Non-Resident Nepali Association (NRNA) Upendra Mahato.

Nepal can benefit more as Russian investors could bring in huge investments, he said, addressing Russian and Nepali business people in Kathmandu today.

"Russians have no political interest, except for the security of their investments and profits, which any investor seeks," said Mahato, adding that the government's assurance of investment security can attract Russian investment in the country.

If Nepal can propose big projects, they will be interested to invest in Nepal, he opined. "Though there have been talks with Russian investors for long, they want more concrete projects to invest in."

Addressing the visiting Russian business delegation led by deputy director of the International Cooperation Department of the Russian Federation's Chamber of Commerce and Industry Tatiana V Legchilina, industry minister Anil Jha assured them of security to their investment. "Despite political instability, investment is a primary concern that is key to peace and prosperity," he said, assuring the business fraternity of investment facilitation.

Similarly, vice president of Nepal-Russia Chambers of Commerce Naresh Shrestha said that Nepal still provides scope for investment though there are challenges. "After Russian airlines, Aeroflot, stopped its flights to Kathmandu, the flow of Russian tourists has slowed down," he said, urging it to start flights again.

Russian ambassador to Nepal Sergey V Velichkin was of the view that Russian investment in India and China has been increasing and Nepal — that is placed between the two big markets — should also take advantage and attract more Russian investment.

"International trade is all about shaping destinies of the world," he said, adding that trade must be attached with value and moral. "Nepal and Russia both believe in trade with value, but the understanding of the opportunities that Russia can offer is very poor in Nepal despite many commonalities."

 

Nepal-Russia bilateral trade

Fiscal Year — Exports — Imports

2005-06 — Rs 58.43 million — Rs 900.52 million

2006-07 — Rs 40.86 million — Rs 812.29 million

2007-08 — Rs 27.26 million — Rs 1131.56 million

2008-09 — Rs 55.16 million — Rs 1086.92 million

2009-10 — Rs 33.87 million — Rs 436.03 million

2010-11 — Rs 117.11 million — Rs 647.36 million

(Source: Trade and Export Promotion Centre)