FNCCI pledges support for Nepali missions to boost investment, exports

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has pledged continued support for Nepali missions in various countries to promote investment, tourism, and exports.

Speaking at an interaction programme organised by FNCCI for newly appointed ambassadors and three consuls general for 17 countries, he announced that FNCCI is working to establish a foreign investment support room and act as a bridge between investors and the government.

Dhakal urged the ambassadors and consuls to take the initiative to expand economic diplomacy by utilising the mechanisms to the fullest. Emphasising the need for economic diplomacy as a standard for performance, he encouraged the newly appointed ambassadors to work towards creating a more investment-friendly environment in Nepal.

He suggested utilising FNCCI’s international network, which includes collaborations with about 50 private sector representative organisations and chambers worldwide. He also suggested that foreign companies and organisations could be encouraged to become members of FNCCI.

Discussing Nepal’s economic challenges, Dhakal mentioned that various policies and measures to control demand have had negative impacts. “Post-Covid 19 pandemic, managing the significant economic growth was necessary. However, the adopted policy of economic control led to a large migration of manpower and a decline in investment and employment,” he opined.

He mentioned that foreign investment in the past two years has been limited to Rs 7 billion to 9 billion annually, only about 0.2% of the country’s GDP, and stressed that investment promotion should be a priority for everyone.

Dhakal pointed out that the Nepali Mission and FNCCI could jointly organise various investment promotion programmes. “In the last one and a half years, we have organised major summits in India, China, and Dubai,” said Dhakal, mentioning the participation of about 150 local entrepreneurs from each country in these programmes.

Highlighting the potential for Nepali agricultural products in Middle Eastern countries, Dhakal said that special attention needs to be paid to this area.

He further stated that Nepal’s graduation from the least developed countries will impact the private sector due to the reduction in facilities available at the international level. He reminded the newly appointed ambassadors of their significant role in mitigating such impacts.

The participants of the programme agreed on the need to minimise the impact of graduation. They also emphasised the importance of gaining the private sector’s trust to attract foreign investment. Nepal's Ambassador to the UK, Chandra Ghimire, suggested initiatives for a bilateral tax exemption agreement.

Proposed Ambassador to China, Krishna Prasad Wali, mentioned the potential for exporting water from the Nepali Himalayan region. Other proposed ambassadors to countries including South Africa, Pakistan, Saudi Arabia, Spain, Portugal, and Malaysia expressed their commitment to working with the private sector.

Nepal's Ambassador to Germany, Sahayog Rupakheti, suggested that FNCCI take the initiative to obtain GSP+ facilities for countries exporting to Europe and called for discussions on the ratification of ILO Convention 87.

Ministry of Foreign Affairs (MoFA) joint secretaries Lakshuman Khanal and Gyan Bahadur Magar stated that expanding economic diplomacy is a priority for MoFA and pledged special initiatives in this regard.

FNCCI Senior Vice President Anjan Shrestha also urged the newly appointed ambassadors to prioritise economic diplomacy. The programme was attended by FNCCI officials and other participants.