Nepal losing out on foreign investment

KATHMANDU, NOV 9:

With the Constituent Assembly dying without adopting a statute, its harsh impacts on the economic front have surfaced, especially on possible foreign direct investment.

Nepalese envoys abroad had apprised the government that host countries and the business community there had assured investment once the country got its constitution and stability returned.

“We lobbied hard for increased support and investment in our development sectors,” a Nepalese Ambassador to one European country said. 

“They were very positive then, but now they prefer to invest in places like India, China and African countries.”

Saudi Arabia’s billionaire Prince Al-Waleed bin Talal refused to visit Kathmandu the second time in August. He had earlier promised to announce his investment plan in Nepal. 

During his first visit in November 2010, the Prince had showed interest in investing in hydropower, tourism and the hospitality industry. The government had then announced the Mahaujjwal Rastradeep Medal for him to encourage him to invest in Nepal.

He was expected to float his investment plan in detail in his next visit, when he was to receive the Medal. 

“Instead, he chose to receive the honour in Riyadh,” Ambassador of Nepal to Saudi Arabia Udaya Raj Pandey said. “It was because he did not see any business sense to announce plans at this particular juncture.” 

Pandey said many Saudi business leaders and companies were interested in investing more than US$ 2 billion in hydropower generation, hotel and airlines, and in tapping drinking water, but began shifting their capital to Egypt and Sudan — after reviewing business prospects in our country.

Recently, Chinese Ambassador Yang Houlan said the interests of foreign investors, including of China’s, might shift from Nepal if this situation prevails.