Although Nepal enjoys good friendly relationship with the US for decades, the economic engagements between the two countries have effectively dropped and limited to the political and development issues. The private investors are not aware of fresh developments happening in the country. [break]
“It is very necessary for us to steer peace process to a logical conclusion on time and establish business-business relationship, if we are to lure investment from the US investors,” said Nepal´s Ambassador to the US Dr Shankar Sharma.
Dr Sharma who in the recent period stepped up his interactions with US investors and government officials noted that US investors invariably question him whether they should put their money in Nepal in the current political situation.
“The government and political leaders back home should think the matter seriously so that this dilemma of investors can be addressed,” he told myrepublica.com.
As for the second constraint related to the lack of strong private sector ties, Dr Sharma said he has taken initiatives for establishing formal affiliations between Federation of Nepalese Chambers of Commerce and Industry (FNCCI) with the US Chamber of Commerce, Business Council for International Trade.
“Better ties between top business associations will effectively catalyze the flow of information, goods, capital and technology,” he said.
US investors are competitive in sectors like IT, banking and accounting, health and education services, among others. Nepal has already opened those sectors for overseas investors under WTO. However, American investors are unaware of it.
“So, better private-private relations can prove vital for Nepal to tap US investments,” he said.
Dr Sharma further stated that Ministry of Commerce and Supplies was presently preparing details of sectors that Nepal has opened and in which US investors can enjoy special advantages. “We will forward it to potential investors and also interact with them,” he said.
Apart from this, Ministry of Foreign Affairs is soon appointing a separate official to look after and coordinate on the economic issues at the Embassy in the US.
Moreover, to deepen economic engagements between the two countries, the two governments have recently initiated steps to sign a bilateral trade agreement. Under it, Nepal is pinning hopes to get special facilities so that its dying readymade garment and downturn woolen carpet and other industries could get a new lease of life.
But Dr Sharma also drew attention to poor utilization of benefits like generalized system of preferences (GSP) facilities by the Nepali business community. “As we work on the new arrangements, Nepali private sector should also show seriousness about utilizing the facilities,” he said.
Referring to his general impression, Dr Sharma noted that Americans are attracted to Nepal. “It is because of this more travelers from the US visited Nepal last year despite cautious travel advisories by the [US] government,” he said and stressed on the need to work out special campaigns to lure more US tourists to Nepal.
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