On Friday, during the Hotelier Summit 2024 organized by Capital Nepal, Industry, Commerce, and Supply Minister Damodar Bhandari addressed significant obstacles to foreign investment in Nepal. Minister Bhandari attributed the lack of foreign investment to conflicting policies among government agencies, which hinder progress and investment opportunities.
Bhandari noted that despite the government’s efforts to formulate numerous policies, these policies often clash, creating barriers rather than fostering a conducive environment for investment. “The government’s policies have created a situation where one policy obstructs another. In such an environment, foreign investment is unlikely to flow. We cannot just hope for foreign investment; we need to create a welcoming environment,” he stated.
He also pointed out the lack of progress in legislative matters, mentioning that critical issues are not being addressed in the legislature. “We need to identify the reasons for the lack of improvement despite everyone, including the government, private sector, and other state agencies, seeking an investment-friendly environment,” Bhandari said. He criticized the tendency for blame-shifting and lack of accountability among stakeholders.
According to Bhandari, fostering a trustworthy environment between the government, private sector, and investors is essential. He expressed concern over the disparity between the abundance of financial investments and the insufficient investments in sectors such as tourism, industry, and hotels. “We need to take these issues seriously. The government is committed to creating a conducive environment for investors,” he assured.
Bhandari admitted that the current parliament has failed to pass a dozen laws within its two-year term. He emphasized the need for a policy that simplifies investment processes rather than complicating them, citing ongoing issues in aviation, transportation, and road infrastructure as areas requiring urgent attention and potential opportunities.
He urged the tourism sector to provide constructive suggestions for policy improvements. The government’s priorities include tourism, IT, agriculture, and energy, and Bhandari encouraged investments in these sectors. He highlighted that the government alone cannot manage the capital of NPR 18.5 billion and that collaboration with the private sector is crucial.
“Provide us with suggestions for policy improvements. The government is ready to facilitate and work alongside the private sector. We need to build an environment of mutual trust between the government and private sector,” Bhandari concluded.
