Recently, Prime Minister Sushil Koirala met a delegation of Non-Resident Nepali Association (NRNA) members, led by its dynamic president, Shesh Ghale, an Australian multimillionaire. During the meeting, Koirala is said to have welcomed the contributions of the NRNA and assured them of a positive investment climate for continuing investment from non-resident Nepalis. The current government—which includes highly educated ministers from prestigious Western institutions such as Finance Minister Ram Saran Mahat, Information and Communications Minister Minendra Rijal, and Commerce and Supplies Minister Sunil Bahadur Thapa—seems to have a positive international outlook and is already doing internal homework on considering many past NRNA demands,  not least, the granting of a special citizenship status to NRNs. Past governments have not understood the positive implications behind these well-meaning NRNA proposals and thus, completely neglected them.

An accommodating government

To begin with, NRNA under Ghale, who also heads the MIT Group in Australia and the Ghale group of investment companies in Singapore, has done something remarkable by investing Rs ­­8 billion to set up the Sheraton Hotel in the heart of Kathmandu. Ghale has proved his commitment to a pro-investment lobby for Nepal, beyond mere rhetoric.  Thus, when Prime Minister Koirala met Ghale at Baluwatar on October 14, there was consonance in heading in the right direction to uplift Nepal’s economic horizons.  It would be great if the Nepal government could also let the NRNA be involved directly in the management of the Bhairahawa Special Economic Zone, which is all set to begin operations in the coming years, hopefully serving as a service hub for Indo-China investment and trade and transit links.  

­­­­­­­­­­In his recent statements at the Constituent Assembly and in the Nepali media, Prime Minister Koirala, who has shown remarkable tolerance for opposing ideologies in his Cabinet, has emphasised the opening up of Nepal on many economic fronts, integrated with the search for a correct National Security Policy that can guarantee peace, stability, and development.  He has met various NRNA representatives in his foreign travels as well and assured them of welcoming every single paisa of NRN investment to the benefit of both sides. Koirala is also working slowly towards building an atmosphere of positive investment in the country while pushing forward the constitution-drafting process. ­­­­­­­Recently, Prime Minister Koirala also discussed with Ghale a bill related to the establishment of an Open University in the country. ­­

India, China prospects

The NRNA under Ghale seems to understand that Nepal’s economic horizons are closely intertwined with that of China and India. The recent visit of Indian Prime Minister Narendra Modi was an open commitment to assist Nepal in its rapid economic transformation, particularly in the power sector from which both countries can benefit. On this,­ PM Koirala has shown satisfaction with the recent Nepal-India Power Trade Agreement and the Project Development Agreement that the Nepal Investment Board signed with GMR, an Indian company, which paves the way for foreign investment in the hydropower sector.  China too holds strategic value as a development partner, and a global economic leader. It too has always pledged the highest priority to its economic assistance programmes in Nepal.  

It would be greatly beneficial if the NRNA could have a permanent desk at the Nepali Foreign Ministry, which could liaise with Nepali government officials to further its economic diplomacy in Nepal in light of the immense cross-border trade and transit activities emergent in the next two decades.  The United States and the G-8 group of countries too hold strong strategic and diplomatic value in the NRNA’s role in Nepal, as the Nepali diaspora has been a contributing factor in their own individual societies as peaceful, rich, and vibrant communities.  

For the NRNA to play an increasingly vital role in Nepal’s development, it must work as a capable economic and political lobby. Political parties must be pressured on behalf of the Nepali global diaspora to minimise their differences in the next two months and complete constitution drafting. The establishment of an Open University with NRNA contributions will also further the Nepal government’s own focus on promoting technical and vocational education. Ghale himself must also think about exploring a quality foreign language institute in Nepal where the international community could be involved in teaching various language skills to potential Nepali migrant labourers so they can better accommodate themselves in labour destinations.

Ghale’s investment in the Sheraton Kathmandu Hotel, is just an initial NRNA investment test. “As the country is still reeling under political stalemate, there is a huge risk in investing in Nepal. However, investors are still hoping that the new constitution will bring the country’s situation onto the right track and provide a congenial environment for investment,” Ghale stated recently in Kathmandu.

Pushing forward

There are already other concepts in the works, such as an NRNA doctors-operated modern public hospital facility, an NRNA-operated trans-Himalayan helicopter charter service, and the partial management of Nepal’s high altitude adventure tourism sector with the Nepal Tourism Board, focused on safe travel and a garbage management system. There has even been positive response to Indian PM Modi’s call to make Nepal the number one country in the world for organic farm exports, since NRNA community members have considerable experience in this field in their host countries.

But at the moment, the NRNA must continue its focus on Nepal’s tourism prospects and on making it the world’s number one adventure travel destination. Constructing more luxury hotels with modern day facilities could be a big boon, besides the rapid construction of a second international airport in the Tarai, if not the Pokhara valley. According to the Nepali Tourism Ministry, five-star hotels achieved an average occupancy of 58.85 percent last year, down from 62.76 percent in the previous year. This was primarily due to the lack of improved air travel and aircraft carrier congestion at Tribhuvan International Airport.  For a country that makes a considerable income from tourism every year, there are only 10 five-star hotels in Nepal, eight of them in Kathmandu and two in Pokhara.

Related to future investment prospects for the NRNA is also the revamping of the existing Citizenship Law of Nepal. People of Nepali Origin (PNOs) who have taken up foreign citizenship automatically lose their Nepali citizenship and by extension, their right to live, work, and own property in Nepal (as everyone knows, this has been more theory than daily practice). The NRNA has been asking the Sushil Koirala government to consider amending these laws, which appear anachronistic to a positive foreign investment climate in Nepal.

The government must give serious thought to these demands, which can help acquire a permanent berth for Nepali society embedded in economic prosperity. It should not be forgotten that every Non-Resident Nepali is still a Nepali at heart.

Prasai works in strategic communications and international development resource mobilisation