Nepal a suitable destination for investment, says PM Prachanda as he opens investment summit

Kathmandu: Nepal is a suitable destination for investment and there are immense opportunities in the country, Prime Minister Pushpa Kamal Dahal 'Prachanda' said on Sunday as he inaugurated a key investment summit here that will see the participation of around 1,800 people from various countries, including 140 from India.

Inaugurating the third edition of the Nepal Investment Summit 2024 with the theme 'Emerging Nepal', Prachanda also said that Nepal is a potential country for investment from legal, geographical and strategic perspectives.

"Nepal is a suitable destination for foreign investment,” the Prime Minister said as he urged investors from across the globe to seize the opportunity and benefit from it.

Prachanda, who is leading a government dominated by left parties, said that Nepal is fully committed to a liberal economic policy, providing full protection to investors.

He said that an investment-friendly environment has been created in the country.

Foreign Minister Barshaman Pun welcomed foreign investment as a catalyst for industrial development, infrastructure development, job creation, export promotion and the transfer of knowledge, skills, and technology.

He expressed confidence that the summit will lead to agreements and collaboration between investors and stakeholders as Nepal’s economic indicators are stabilising and showing positive trends.

Speaking on the occasion, India's Ambassador to Nepal Navin Srivastava said that the Government of India, in future, will continue to encourage Indian investors further in Nepal.

“It is a matter of great satisfaction that India is today the biggest cumulative investor in Nepal with more than 33 per cent of Nepal’s FDI stock currently amounting to nearly Nepali rupees 89 billion,” the diplomat said.

In a video message, Union Minister for Commerce and Industry Piyush Goyal said that Nepal and India not only share border but also a deep-rooted friendship and a vision for a prosperous future.

“India has always been a trusted partner in Nepal’s development journey,” he added.

The two-day summit will witness the signing of MoUs between Nepal and its development partners and foreign investors.

Nepal is showcasing around 146 projects for potential investors during the summit, which has attracted investors from around three dozen countries, including India, China, Japan, the UK, the US, the UAE and Germany.

In 2017, Nepal hosted the first investment summit, drawing investment commitments worth USD 13.5 billion from different countries.

Similarly, the second investment summit held in 2019 secured nearly USD 12 billion for 50 projects. However, only one-third of the commitments were realised in actual practice.

Over 200 investors from China and over 140 from India are attending the two-day summit.