Pun promises incentives to attract US$1b in FDI

DHARAN, Feb 23: 

Finance Minister Barshaman Pun on Wednesday promised all possible incentives to foreign investors in order to realize government´s plan to bring in foreign investment of USD 1 billion in 2012/13, the Investment Year.

Pun, who addressed a program organized by Sunsari Chamber of Commerce and Industries, said that the government was offering all possible facilities and incentives in order to attract foreign investments to mega projects, which can not be executed by government´s budget alone. 

“The investments will fundamentally be sought in areas like hydropower, tourism, agriculture and physical infrastructures,” said Minister Pun. 

In order to materialize the plan, he stated the Investment Board would identify 50 mega projects and unveil them to the investors to attract investments. Pun said that the Board was currently carrying out detailed study of potential projects. “Once we complete the studies we shall approach investors from South Asia, East Asia and Europe,” he said.

“Our aim is to increase the role of private sector to enhance the pace of economic growth,” said Pun, expressing belief that the new effort will help to create more jobs and increase production.

Finance Minister Pun said that he was not satisfied with the pace of development spending, though the macro economic indicators of the economy are positive. He appealed the private sector to scale up investments so that the government´s vision to achieve double-digit growth could be realized. 

Pun acknowledged that long-running energy crisis was a major challenge facing the economy and government´s vision to put the country on double-digit growth track. “In order resolve the problem, we are planning to invest Rs 32 billion to build transmission lines,” he stated.

Minister Pun, touching on labor problems faced by the industries in Dharan and other parts of the country, stressed on the need to raise productivity.

In order to boost investors´ confidence, Pun said the government was planning to introduce ´no work, no pay´ system. But at the same time, he stated the government was also preparing to bring in social security provisions to protect workers´ interests.