More investor-friendly reforms on cards to promote FDI: PM OliPrime Minister KP Sharma Oli has assured Nepali and Chinese business communities that Kathmandu is adopting a second phase of reforms to further open up economy.
Prime Minister KP Sharma Oli has assured Nepali and Chinese business communities that Kathmandu is adopting a second phase of reforms to further open up economy.
Addressing the China Council for the Promotion of International Trade in Beijing on Tuesday, PM Oli said that the government is also committed to sort out hindrances of economic development and make reform a continuous process.
“Chinese investors can have easy and quick access in the vast South Asian market through Nepal. They can make their products cheaper filled with south Asian taste if produced in Nepal,” he said.
He said that Nepal has opened doors for investment in almost every sector like manufacturing, hydropower, tourism, services, IT, mining and agro-based industries.
“Hydropower could be number one choice. Nepal has an immense potential for hydro power generation. Solar, wind and biomass have also good possibility.”
PM Oli said Chinese investment in mega projects can open up a new chapter in Nepal-China economic relations. “This can have the potential of being a game changer for our common good,” he said.
Noting that the global economy itself is well-integrated with the Chinese economy, he added, “How can we afford to miss out on these opportunities? We would surely like to reap benefit by integrating our economy in the most beneficial way.”
China is Nepal’s second largest trading partner and source of foreign direct investment (FDI) and a major source of tourists.
“Though the competition for FDI attraction is fierce among the developing countries,” he continued “as immediate neighbours, we are destined to be the natural partners in such venture.”
With a view to improving and facilitating trade and investment, we have reduced tariffs, simplified tax regimes and focused on the development and operation of trade related infrastructure, he said. Export and import rules and procedures have been made market based, market friendly, open and liberal. Trade facilitation measures have been improved.
“We have made several policy provisions to provide maximum security to foreign investments,” the PM said, adding that minimal tax slabs, no income tax on dividends and exemption of tax are some of the policy provisions to ensure high return on FDI. “We permit full repatriation of income earned from the investment.”
As Chinese tourists themselves are branded as global product worth over $100 billion every year, and all countries are making efforts to attract Chinese visitors, PM Oli said that Nepal given its natural beauty, proximity and hospitable people and culture can be Chinese tourists’ first destination. “Together we can develop Nepal as an exclusive brand for the Chinese tourists.”