Arya News - Delegates at the 11th Asia-Pacific Regional Conference in Guangzhou urge the government to streamline legal procedures, improve security and lower interest rates to boost investment.
KATHMANDU – Non-resident Nepalis have expressed strong interest in investing in Nepal, but say cumbersome legal procedures, excessive bureaucracy, political instability and concerns over economic security continue to discourage capital inflows.
Delegates attending the ongoing 11th Asia-Pacific Regional Conference of the Non-Resident Nepali Association (NRNA) in Guangzhou, China, urged the government to simplify regulations and create a more predictable environment for investment.
Former NRNA president Binod Kunwar, a businessman based in South Korea, said a gap between government rhetoric and implementation remains a major obstacle to investment.
“I have equal investments in both Nepal and South Korea. My experience shows that Nepal suffers from too much talk and too little work,” Kunwar said. “We must formulate time-bound plans. Execution must take place on schedule; otherwise, efforts yield no results. Moreover, adequate execution time must be allotted.”
Kunwar said outdated and restrictive legal requirements often make it difficult for entrepreneurs to operate efficiently, while lengthy administrative procedures add to the cost of doing business.
“Wherever regulatory hurdles exist, the government must intervene immediately to facilitate operations. Furthermore, bank interest rates in Nepal remain exorbitantly high,” he said, calling for a review of monetary and regulatory policies.
Former NRNA president Upendra Mahato said Nepalis living abroad closely follow Nepal’s development and many want to contribute to it. He urged the government to view that sentiment as an economic opportunity.
“Nepal will ultimately be built by Nepalis themselves. If eloquent speeches and sweet promises could build a nation, it would have been prosperous long ago,” Mahato said. “We must now spur development while preserving our heritage and civilisation. That is the resolve we must all make.”
Mahato said diaspora capital alone would not guarantee economic development without clear and investor-friendly laws.
“You cannot attract capital by threatening or intimidating entrepreneurs; you bring in investment by creating a stable environment and offering robust legal protection,” he said. He added that investment by non-resident Nepalis could also help attract wider foreign direct investment by connecting Nepal to international business networks.
NRNA senior vice president Rabin Sherchan said Nepal has significant untapped potential in several sectors and urged non-resident Nepalis to identify emerging areas and increase their investments.
South Korea-based researcher Devi Bahadur Basnet said Nepal could offer opportunities for innovation in medical and protein science.
“There are abundant opportunities to pioneer new ventures in Nepal. We must actively search for them,” Basnet said, adding that Nepal’s natural environment could offer advantages for medical research and related investment.
But infrastructure constraints, particularly along Nepal’s northern border, continue to hamper trade and manufacturing.
Nirmal Sharma Chaulagai, former president of NRNA China, said inadequate infrastructure at border points with China was limiting trade.
He said traders were currently able to import goods through northern border points for only about six months a year because of inadequate facilities.
“Because the government fails to construct infrastructure on time, industrialists suffer severe financial losses as consignment cargoes remain stranded at border checkpoints for extended periods,” Chaulagai said.
Another former president of NRNA China, Rohit Agrawal, said investors ultimately needed assurance that their investments would generate reasonable returns.
Such assurances, he said, required clear statutory protections. Pointing to China, Agrawal said its pragmatic governance and emphasis on economic security had helped attract global capital and offered lessons for Nepal.
Arun Kumar Subedi, a researcher on investment issues, criticised the bureaucratic hurdles faced by investors in Nepal. He said entrepreneurs investing billions of rupees still had to deal with routine administrative problems at the hands of junior government officials.
Citing research, Subedi said around 40 percent of Nepalis living abroad wanted to invest in Nepal, but political instability remained a major deterrent.
Officiating Ambassador of Nepal to China Roshan Khanal assured the delegates that the embassy was ready to help identify viable investment opportunities.
Khanal said 61 percent of Nepalis who had established successful enterprises in China had expressed a strong desire to return to Nepal and set up businesses there.
Former parliamentarian and Nepali Communist Party leader Madhav Sapkota said the discussion on attracting diaspora investment should extend beyond initial capital. He called for greater attention to ways of converting Nepal’s large remittance inflows into productive, long-term investment.
Rastriya Swatantra Party lawmaker Khagendra Sunar said his party was committed to creating a more favourable investment climate, with the objective outlined in its election manifesto.
“In the past, Nepal had a culture where instead of promoting shoe manufacturing, people ended up dismantling the manufacturing companies themselves,” Sunar said. “However, that practice must end, and the government is committed to ending it. We invite you to come and invest. As parliamentarians, we stand fully prepared to draft whatever legislative frameworks are required.”