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There has been a sharp decline in foreign direct investment (FDI) inflow in Nepal in the current fiscal year. The net FDI inflow to the country has plunged by 93.4 percent in the first half of FY 2022/23. Nepal saw a net FDI inflow of Rs 749.4 million in the first half of this fiscal compared to Rs 11.34 billion during the corresponding period of the last fiscal. Nepal is one of the countries that receive the lowest FDI in the world. Despite many talks on attracting FDI in the country, the country has failed to attract foreign investors as expected. While net FDI is on the decline, repatriation is on the rise, as per NRB statistics. Foreign investors have repatriated Rs 1.80 billion in the first half of this fiscal. Such repatriation during the first half of the last fiscal stood at Rs 268 million. Not only net FDI, but FDI pledges in the country also dropped significantly during the first half of the current fiscal year. As per the latest statistics of the Department of Industry (DoI), FDI commitments dropped by 43.27 percent in the first six months of FY 2022/23. FDI commitments totaled Rs 17.30 billion in the review period compared to Rs 30.50 billion in the corresponding period of FY 2021/22. Economists attribute the decline in net FDI inflow to global economic recession.  According to them, the global economy that was coming out from the impact of the Covid-19 pandemic has been hit hard by the Russia-Ukraine conflict and the rise in prices of commodities. Economist Chandra Mani Adhikari said that foreign investment in Nepal has decreased due to the global economic recession. "The world economy has been impacted by the Russia-Ukraine conflict as it pushed the prices of commodities, especially oil, coal, and gas, and disrupted the supply chain," said Adhikari. Economists say it is necessary to improve the existing policy and structural system to bring more foreign investment into Nepal. According to them, while the immediate reason for the decline in FDI might be the global recession, there are structural and procedural obstacles in Nepal that discourage investors. The private sector says there is no coordination on policy and institutional matters regarding foreign investment. There is a trend of announcing various facilities to attract investors but not implementing them, they said. Despite introducing a one-door system in the Investment Board Nepal and Industry Department, FDI has not come in as expected. Of late, the government has eased procedures related to FDI. In November last year, it lowered the minimum threshold for FDI to Rs 20 million from Rs 50 million to attract even small foreign investors in the country. “The threshold was reduced as per suggestions from stakeholders,” said Tiwari. “The decision is expected to encourage FDI in the information and communication sector, which does not need big investments in physical infrastructure.” And, in January this year, Nepal Rastra Bank allowed a company with foreign investment operating in Nepal to borrow up to 100 percent of the paid-up capital from its parent company. Earlier, it was restricted to 60 percent of the paid-up capital. Such companies can also pay an interest rate as high as a one-year benchmark interest rate plus 3.5 percent per annum, up from a one-year benchmark interest rate plus a three percent additional rate per annum earlier. The NRB has also allowed foreign investors to record their FDI details at the central bank by mid-January 2024. Likewise, companies bringing foreign loans can also record such borrowings by mid-January 2024. Nepal’s Foreign Investment and Technology Transfer Act has permitted bringing both FDI and foreign loans. Net FDI in Nepal (First six months)

Subrata Banerjee is the General Manager of Radisson Hotel Kathmandu, one of the leading five-star properties in Nepal. He has been associated with the Radisson Hotel Group for more than 10 years and has been running Radisson Kathmandu as General Manager since 2017. As a seasoned hotelier, Banerjee spoke to ApEx about the current state of the domestic hospitality industry and its future outlook. Excerpts: What was the impact of the Pokhara air crash on Nepal's tourism sector? We did receive cancellations, and I'm sure many also postponed their visits out of fear. However, I would like the media to encourage more tourism instead. Let's not stab ourselves in the back by talking about the crash too much. It's not as bad as the media is portraying it to be. For instance, certain other International Airlines had accidents before, but people are still traveling in those airlines. Once you're in the air, there is always a certain level of risk, but as long as you're confident that the aircraft is well maintained and the pilots are properly trained, it should not bother you much. What is the current situation of the Nepali hospitality sector? The Nepal Tourism Board has shown some aggression in promoting tourism, but we need to do much more to showcase ourselves globally. To help the hospitality sector, we must focus on 360-degree improvements in road and infrastructure development. We should promote Nepal not only in India, but also in other countries by using visual aids to highlight the country's natural beauty as a tourist destination. However, once tourists start visiting, it's important that our infrastructure can properly support them. For example, Nagarkot is a beautiful place, but a poorly maintained road leading to it could create a negative impression. The same goes for Pokhara; although I enjoy driving, the road leading up to Mugling is quite bad. Human resources availability has emerged as a huge issue for the hospitality industry post- pandemic. How are you managing human resources and overall business after covid? It's a serious problem, as there is a significant shortage of skilled manpower, particularly in the hospitality sector, since many have moved to other countries. We're currently recruiting individuals with comparatively less skill and providing them with training to fill those positions. As for businesses, they're slowly returning to normalcy, but it will likely take until the end of third quarter of this fiscal year for it to reach pre-pandemic levels. How is Radisson expanding its presence in Nepal? Radisson has signed a few more properties in Biratnagar and Bhairahawa, with more properties on the verge of getting signed. Oriental Hotels Limited, which owns the Radisson Hotel in Kathmandu, is also expanding its infrastructure. Oriental Hotels Limited has recorded profit in the first half of this fiscal year. What is the financial condition of the company? Yes, the company is currently profitable. However, Oriental Hotels experienced losses for two consecutive years due to the pandemic. For most of the pandemic period, the hotel was completely shut down. As the pandemic subsided, we adopted a policy of gradually reopening the hotel. As business began to grow, we opened both buildings. The government has set a target of one million tourists for 2023. Do you think this goal is achievable, and what steps should the government take to make it possible? I believe it is definitely possible if the government takes the initiative to showcase Nepal at all international trade fairs using proper visual aids to attract tourists to visit. At the same time, the government should ensure that Nepal's infrastructure is greatly improved. If these steps are taken, achieving the target of one million tourists is possible. Many five-star hotels are coming up in Kathmandu as well as other parts of the country in the near future. Can they make a profitable business in the present scenario? On one hand, more branded hotels coming up will raise the standard of hospitality because everybody will be on their toes. All these groups who're developing five-star properties have done their homework and they know the place has potential. The only thing that needs to be done from our side is to make sure we have a stable government in place. We have to make sure that tourism is given due importance as it is one of the major sectors that bring foreign currency to the country.

South-Asian Parliamentary Delegation from the German Bundestag, the German House of Representatives, is on a four-day official visit to Nepal from February 19-22. The six-member parliamentary delegation comprises of parliamentarian Renate Künast, Andreas Larem, Paul Lehrieder, Ria Schröder, Dr Malte Kaufmann and Dr André Hahn, read a statement issued by the Embassy of the Federal Republic of Germany in Kathmandu. “This visit after the pandemic will further strengthen parliamentary relations between Nepal and Germany, contributing to the long-standing bilateral friendship and cooperation that has lasted for more than 60 years,” Renate Künast, head of the delegation. The delegation will discuss a wide range of topics, including economic transformation of Nepal, tourism promotion, Nepal’s peace process and human rights, women empowerment, rules-based international order, agriculture and regional cooperation as well as German-Nepali development cooperation, the statement read. The members of the delegation called on Prime Minister Pushpa Kamal Dahal, Speaker of the House of Representative Devraj Ghimire, Deputy Prime Minister and Finance Minister Bishnu Paudel, Minister for Agriculture and Livestock Development Jwala Kumari Sah and Foreign Secretary Bharat Raj Paudyal. The German parliamentary delegation also had an interaction with the members of the Federal Parliament of Nepal. Besides the official meetings, the parliamentary delegation will also have an interaction with representatives of German Development Cooperation, German NGOs working in Nepal and human rights organizations. The Delegation also plans to visit ICIMOD Knowledge Park, Nepal Vocational Academy and the Nepal Secretariat of Skills and Training (NSST), the statement further read. A visit to the rich cultural heritage of Bhaktapur and Bauddhanath is also planned during the four-day visit to Nepal.

Indian Ambassador to Nepal Naveen Srivastava handed over the first tranche of 20 Kidney Dialysis Machines (KDMs) to Minister for Health and Population Padam Giri on Monday. These 20 KDMs are first of the 200 such machines that are being gifted by people and Government of India to people and Government of Nepal, read a statement issued by the Embassy of India in Kathmandu. The units include all the related equipment. The remaining consignment will be delivered in the near future. On the occasion, Ambassador Srivastava said that the long-standing development cooperation between India and Nepal, especially in the health sector, added that the gifting of these machines reflected the continued support of India as Nepal augments its health infrastructure. Minister Giri thanked the Government of India (GoI) for its continued developmental support in the Health sector, including for the Kidney Dialysis Machines, for boosting the medical facilities for the people of Nepal, the statement read. Cooperation in the Health sector is a significant aspect of India-Nepal development partnership. Major health facilities constructed under GoI grant assistance include Nepal Bharat Maitri Emergency & Trauma Centre in Kathmandu, BP Koirala Institute of Health Science in Dharan and OPD complex for Bir Hospital in Kathmandu, apart from nearly 50 health-related High Impact Community Development Projects (HICDPs) undertaken in various districts of Nepal, the statement further read. GoI is also providing post-Earthquake Reconstruction grant assistance of USD 50 million for the construction of 132 health posts in various earthquake-affected districts of Nepal. During COVID, apart from providing vaccines under bilateral grant (over 2 million doses) and through COVAX, GoI supported Nepal in enhancing physical capacity of health institutions and supplied medical equipment like ICU beds and medical Oxygen plants, essential medicines, RT-PCR test kits PPE, Ventilators etc. GoI also provides Ambulances every year to various health institutions of Nepal. Till date, 940 ambulances have been distributed covering almost all districts of Nepal. As close neighbors, India and Nepal share wide-ranging & multi-sectoral cooperation. The gifting of these KDMs reflects the continued support of the Government of India in bolstering the Government of Nepal’s efforts to build healthy Nepal.  

Manama (Bahrain): Nepali ophthalmologist Dr Sanduk Ruit will receive the Isa Award for Service to Humanity amid an event in Manama, the capital of Bahrain, on Feb 21. The King of Bahrain, Hamad bin Isa Al Khalifa, will present the award to Dr Ruit at the Isa Cultural Center in Manama. At a press briefing on Feb 20, Minister of Information of Bahrain Ramzan bin Abdullah Al-Nuaimi said: "Nepal is often hailed as a country of kind people and this achievement of Dr Ruit has proved that." The fifth edition of the award, which carries a purse of $1m, recognizes Dr Ruit’s contributions to human service through eye treatment. "This award is a gift from Bahrain to the world. It will also inspire countless young people in different parts of the world to look for innovative ways to change the world and play their role in service to humanity," Al-Nuaimi added. The award, established in 2009 by King Hamad, is granted every two years to either individuals or organizations selected through a grueling process by an expert panel of jurists.  

The physical progress of the construction of the roads, bridges, and railway network has been sluggish during the first six months of the current fiscal year. The data of the Ministry of Physical Infrastructure and Transport shows major infrastructure projects recorded zero progress to limited progress with none of the major projects under the ministry witnessing significant progress in the first half of the current fiscal year. For instance, the government has targeted to construct the 10 kilometers section of the Khadbardi-Kimathanka road under the Koshi Corridor in FY 2022/23. As of the first half of the fiscal year, there has been no progress in the project at all. The government plans to upgrade this road which connects China’s other border point, to the blacktopped level. Likewise, the government has been widening the East-West Highway into four lanes from the current two lanes. The progress of the project has remained dismal with just 200 meters being widened during the first half of this fiscal year. The government has a target of widening 90 kilometers by the end of the current fiscal year. There has been little progress in the construction of the Hulaki Highway and the Mid-Hill Highway projects, but the overall progress remains disappointing. Only 29.2 kilometers of Hulaki Highway was improved in the first six months against the annual target of 250 kilometers. The government has targeted to complete construction of 356 kilometers in the current fiscal year, but 28.3 kilometers were constructed in the first six months of this fiscal, according to the ministry. Only two kilometers of black-topped roads were completed under the four-lane road network so far, this fiscal year against the annual target of constructing 100 kilometers. Likewise, only 800 meters of blacktopped roads whose width is above four lanes, have been completed during the first half of the current fiscal, according to the ministry. The target was to complete 16 kilometers by the end of the current fiscal year. When it comes to two-lane blacktopped roads, construction of 118.83 kilometers was completed nationwide in the first six months of this fiscal against the annual target of 1,400 kilometers. The physical progress of the construction of bridges is similar to that of the roads. The government has the target of completing 290 bridges on the two-lane roads. But the physical infrastructure ministry said that only 39 bridges were completed during the first six months of this fiscal. But not a single bridge was completed on the roads which are wider than two lanes, according to the ministry’s data. The government has the target of constructing 10 bridges on such roads by the end of the current fiscal. Likewise, the sluggish progress in the construction of railway lines has also affected the projects. The Department of Railway has been working on track opening for the railway projects, particularly for the proposed East-West Railway. The track opening of 700 meters has been completed of the proposed railway so far against the annual target of 12 kilometers in this fiscal year. The dismal physical progress of the projects is also reflected in poor capital spending by the agencies under the physical infrastructure ministry. As per official statistics, the ministry recorded only 14.59 percent of capital spending during the first half of the current fiscal. "Rainy season and mobilization of govt employees in the election are the major reasons behind slow progress," said a senior official of the Department of Road. However, contractors have a different take. "Govt has not been making a timely payment for the work which has affected the contractors' ability to expedite works," said a member of the Federation of Contractors' Association of Nepal (FCAN).

The Election Commission has established an office of the Election Officer for the elections of President and Vice-President. Chief Election Commissioner Dinesh Kumar Thapaliya inaugurated the office established in Parliament building New Baneshwor. CEC Thapaliya said that the voting will be held from 10 am to 3 pm on March 9 and the result will be made public within 7 pm the same day. The Election Commission has set up two polling stations—one for the Parliament members and another for the Province Assembly members. Thapaliya said that the process will begin with the publication of the voter list for the presidential election on February 10. He said that the election will be held on March 10 if none of the candidates secure a majority. The Election Commission has set the date of February 25 for candidate registration, February 28 to publish the final list of the candidates and March 9 for the voting. Similarly, the process of vice-presidential election will start on March 11.  

The prominent Indian wearable brand boAt has introduced new additions to its hearable and wearable category in the Nepali market. TeleTalk Pvt. Ltd., the authorized distributor of boAt in Nepal, has launched two new smartwatches - boAt Xtend Pro and boAt Wave Call in the market along with earbud Airdopes 411 ANC. According to the company, boAt Xtend Pro is a bluetooth-calling smartwatch that comes with a 1.78-inch AMOLED display and a battery that lasts 10 days with just 30 mins of ASAP fast charging. The Xtend Pro supports Bluetooth calling through an in-built speaker that allows you to keep in touch on the go. It also supports a responsive dial pad that allows you to save and call 10 contacts right from your smartwatch. "The smartwatch is built for an active lifestyle and has 700+ active modes, real-time heart rate tracking, accurate SpO2 monitoring, and supports multiple watch faces and theme options," reads a press statement issued by the company. The boAt Wave Call is a smart Bluetooth calling smartwatch with a 1.69" HD curved display with a never-ending 10-day battery backup to track your every movement. Packed with a heart rate & SpO2 sensor as well as with software features like sedentary and hydration alerts, boAt Wave call is your perfect health companion. "A responsive dial pad allows you to save and instantly connect with 10 contacts. boAt Wave call is highly customizable with 100+ watch faces to compliment your every outfit," informed the company. Meanwhile, the Airdopes 411 ANC comes with Active Noise Cancellation and suppresses external environmental noise up to 25 db. Airdopes 411 ANC features 2 ENx-enabled mics that provide a crystal-clear calling experience and are powered with 10mm Drivers tuned with boAt Signature sound and offer a total playback time of up to 17.5 hours. These earbuds can be quickly topped up with boAt ASAP Charge to give 60 minutes of performance with just a 10-minute charge. Apart from these new smartwatches, their new lineup for Nepal also includes Rockerz 235 V2 (Neckband), Airdopes 138, Airdopes 141, Airdopes 161 and Airdopes 181. These products come with boAt Signature Sound along with superior build quality offering a great experience at an affordable price. “We have seen high demand and growth in the market for boAt products. We are happy to announce the launch of a new lineup of boAt’s smartwatches with Bluetooth calling and hearables accessories with Active Noise Cancelling in Nepal. With boAt being one of the most preferred brands in the market right now, these new products will certainly set new milestones in the market,” said Pratik Jalan, Executive Director of TeleTalk. Prices