Foreign Investment to Increase Domestic Production

When they were in trouble, the developing countries of the world took a big step by getting money from abroad.

• Foreign investment approvals should be done automatically by the government.
• Nepalese should be able to invest abroad, and laws need to be made to allow this.
• In places where foreign investment is needed, the government and the private sector need to work together.
• The Rs. 50 million limits on investments from outside the country should be set by region, not as a single sum.

Foreign direct investment (FDI) is needed for the country to become self-sufficient, say those with a stake in the matter. Hemraj Dhakal, vice-president of the Confederation of Nepalese Industries (CNI), said on Sunday that the first session of the "Make in Nepal Indigenous Summit-2022" was a chance for foreign investment to boost production.

He said, "I don't think Nepal has as many opportunities as other places." "Nepal needs to improve a lot of its policies in order to do that." "Now, the only way to become self-reliant and self-reliant is to increase domestic production."

He said that it is important to build infrastructure for that. Varsha Shrestha, who is in charge of business at ICRA Nepal, says that some foreign investment banks in the financial sector have not been able to stay in Nepal because of problems with their own management and problems in the country. She said that the foreign investment banks that had moved back to the country had made a profit instead of losing money. He says that Standard Chartered Bank is still open and making a lot of money because it is well run.

"After Nabil, various foreign-invested banks came, and working in a transparent manner would be enough to make a profit," she said.

Economist Achyut Wagle said that there wasn't enough foreign investment in years other than 1997 and 2015. "We've talked about FDI for a long time. But it's not coming the way he thought it would, he said. He said that there was a problem even when the political parties weren't clear about foreign investment. He said that this is why it is important for the parties to agree on economic issues.

Maha Prasad Adhikari, the head of the NRB, said that it is a shame that Nepalis can't invest abroad. He said that even though the rules for FDI are easy, the fact that there is no law yet about Nepalis investing abroad is making the world look bad. He said, "It makes us feel bad to tell the world that Nepal's law has stopped Nepalis from investing abroad."

He made it clear that not all types of foreign investment can be welcomed, because only investments that include good governance are in the best interest of the country. Bad money brings in some foreign currency in the short term, but it doesn't do well in the long run. So, he said, the state policy on foreign investment needs to be made clear. Governor Adhikari said that both the government and the private sector need to change how they think about foreign investment.

He also said that people in the private sector thought that foreign investment was "weakening." He said that foreign investment has made some Nepalese institutions more competitive than they were before. The official said that one reason foreign investment was not coming as expected was because Nepal's government policies were not stable.

He said, "Foreign investors want to invest by making plans for a certain amount of time."

He said that there are a lot of rules that make it hard for foreign investors to do business in Nepal, and that these rules should be made easier at the state level. He says that encouraging foreign investment is a specialized service that can't be done by just any institution.

Bishwa Poudel, the vice chairman of the National Planning Commission, said that foreign investment in modern technology and management should be encouraged. In addition, there is disagreement over the type of foreign investment that should be attracted. We must rely on foreign investment in order to make a significant improvement in the area "It was his opinion. "In terms of both technology and management, we've fallen behind.

"Now we need to understand that foreign investment can make a qualitative leap in the field of technology and management," said Poudel.

A qualitative shift has occurred in the banking sector as a result of increased foreign investment. Poudel claimed that foreign investment in hydropower projects like Butwal Power Company and Khimti has resulted in the birth of hundreds of engineers. Foreign investment appears to have been more prevalent in the aerospace industry. In the same way, there has been a recent increase in foreign investment in cement. It has also improved the competitiveness of the construction industry.