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The Nepal-India Chamber of Commerce & Industry (NICCI) and the Bengal Chamber of Commerce & Industry (BCC&I) signed a Memorandum of Understanding (MoU) on economic collaboration during the inaugural day of the Indo-Pacific Economic Conclave 2023 held in Kolkata, India.

Shreejana Rana, President of NICCI, and Subir Chakraborty, President of BCC&I, signed the MoU in a ceremony that symbolized a new era of economic cooperation.

The Indo-Pacific Economic Conclave 2023, organized by BCC&I, served as the ideal platform for this landmark agreement, reads the statement issued by NICCI.

During the program,  Rana addressed the critical issues facing the Indo-Pacific region.

Her speech touched on various aspects, including cargo shipment, infrastructure development, logistics optimization, supply chain efficiency, visa regulations, and more.

In addition to that, Rana underscored the immense potential of the Indo-Pacific region, highlighting its economic dynamism, cultural diversity, and capacity for innovation, according to the statement.

She emphasized the need to confront the pressing challenges that hinder the region's progress, such as infrastructure gaps, logistics inefficiencies, and the disruptive impact of the COVID-19 pandemic on supply chains.

Moreover, Rana shed light on concerns related to visa regulations, non-tariff barriers, environmental sustainability, and climate change, all of which can significantly affect cross-border trade and investment.

Meanwhile, Rana put forth a comprehensive set of solutions to resolve these problems.

Furthermore, she advocated for the negotiation of bilateral agreements on labor movement to address labor shortages and skills gaps in various sectors.

Rana also emphasized the importance of digitalization and e-commerce initiatives to facilitate the seamless movement of goods and services across borders, reducing paperwork and administrative burdens, the statement reads.

Recognizing the increasing importance of environmental considerations in global trade, Rana urged for collaborative efforts to address environmental concerns and promote sustainable practices.

She encouraged regional stakeholders to adopt eco-friendly trading practices and engage in responsible environmental stewardship to enhance the region's reputation as a responsible and eco-conscious trading partner.

On top of that Rana also highlighted the significance of cultural exchanges, educational programs, and tourism as instruments to promote greater understanding and cooperation among nations. She stressed the importance of fostering a sense of regional identity and unity as a means to bolster cooperation further.

Additionally, she emphasized the critical role of collaborative research and innovation initiatives in driving economic growth and technological advancement within the region. Mrs. Rana also proposed coordinated efforts in disaster management and relief, including the establishment of early warning systems and joint response teams, to minimize the impact of natural disasters on the region's economies, the statement further reads.

As part of the seamless connectivity agenda and to promote bilateral and regional tourism, Rana unveiled the recent release of a Coffee Table Book on Spiritual Circuits between Nepal and India. This beautifully curated book features five religious circuits - Ramayana, Mahabharat, Shivashakti, Buddhist, and Sikh - in both countries. Following its successful unveiling in Nepal, plans are underway for a grand launch in India, enhancing cultural exchanges and promoting tourism.

A government survey shows that the stock of Foreign Direct Investment in Nepal increased by 16 percent to Rs 264.3bn at the end of the fiscal year 2021/22. Paid-up capital is the major component in FDI stock as it accounts for 53.7 percent of total FDI stock, whereas the reserves and loans in total FDI stock accounts for 31.7 percent and 14.6 percent respectively, the report says. 

The Survey Report on Foreign Direct Investment in Nepal published by Nepal Rastra Bank states that Nepal has received foreign investment from 57 different countries as of mid-July 2022.  In terms of total FDI stock, India takes top position with Rs.88.6bn followed by China (Rs 33.4bn), Ireland (Rs 20.9bn), Singapore (Rs 16.1bn), and Saint Kitts and Nevis (Rs 15.1bn).

Industrial sector accounts for 62.6 percent of total FDI stock. Of which, the electricity, gas, steam and air conditioning sector constitutes 32.8 percent and manufacturing sector 29.5 percent of total FDI stock. About 37.3 percent of total FDI stock is in the service sector. Of which, the financial and insurance services sector constitute 25.6 percent, accommodation and food services sector 5.3 percent, and information and communication sector 4.8 percent of the total FDI stock.

The electricity, gas, steam and air conditioning sector, particularly hydropower, in Nepal has been a preferred sector for FDI in recent years, the report says. A latest survey shows that 32.8 percent of FDI stock and 41.8 percent of total paid-up capital is in this sector. Moreover, the hydropower sector has also attracted other sources of external financing such as foreign loans in addition to FDI; the electricity, gas, steam and air conditioning sector accounts for 41.4 percent outstanding foreign loan at the end of the FY 2021/22, the report says.

Nepal has initiated institutional and legal reforms in recent decades with the aim of promoting FDI to complement the resource gap in capital formation. Gradual liberalization of FDI inflows in various sectors has been encouraged by creating an investment-friendly environment and prioritizing foreign investment-related reforms. There are several legal frameworks for guiding and encouraging FDI in Nepal:

• Foreign Investment Policy, 2015
• Foreign Investment and Technology Transfer Act, 2019 (FITTA)
• Public-Private Partnership and Investment Act, 2019
• Industrial Enterprises Act, 2020, e) Institutional reforms such as the establishment of One Stop Service Center to facilitate foreign investment
• Nepal Rastra Bank Foreign Investment and Foreign Loan Management Bylaw, 2021 (Second Amendment)

The World Investment Report 2023 published by UNCTAD shows that global FDI inflow decreased 12.4 percent to $1,294.7bn in 2022 from $1,478.1 in 2021. The Russia-Ukraine war, high food and energy prices, fears of a recession, and debt pressures resulted in the decline of FDI inflows around the world.

FDI inflows to Asia decreased 0.05 percent from $662.1bn in 2021 to $661.8bn in 2022. The region remains the largest recipient of FDI, accounting for 51.1 percent of global FDI (UNCTAD, 2023). However, the inflows are highly concentrated among its largest recipients: China ($189.1bn), Singapore ($141.2bn), and Hong Kong-China ($117.7bn).

In contrast to the global trend, FDI inflows to South Asia increased nine percent to $55.9bn in 2022. FDI in India, the largest FDI recipient of the sub-region, increased by 10.3 percent with inflows of $49.4bn in 2022. In 2021/22, Rs 15.7bn was approved for dividend repatriation by companies with foreign investment. The highest dividend repatriation approval was for the manufacturing sector followed by the information and communication sector.

According to the report, as of mid-July 2022, the outstanding foreign loans (excluding direct loans from foreign direct investors) of FDI companies stood at Rs.68.7bn. Such loans were Rs 40.7bn a year ago. The companies in the hydropower sector have utilized more foreign loans as the outstanding loan of this sector stood at Rs 28.4bn in mid-July 2022. 

The World Tourism Day on Wednesday has been celebrated with the theme “Tourism and Green Investment.” To mark the occasion, tourism stakeholders of Pokhara are planning to launch “Green Pokhara”' campaign and raise awareness against environmental degradation. 

Chairman of Pokhara Tourism Council Pom Narayan Shrestha said they have already made the necessary preparations for the campaign. He added that the Gandaki Province Ministry of Tourism, Industry, Commerce and Supplies has also pledged to extend its support. 

Here is what tourism entrepreneurs and stakeholders have to say about Pokhara’s preparations for the World Tourism Day.

Pom Naryan Shrestha, Chair of Pokhara Tourism Council

While linking tourism to the environment, Pokhara should always be the first priority. It is because Pokhara is one of the richest cities having almost all kinds of natural resources in all over Asia. We should be concerned not only to protect it, but also on how we can link it up with the international market. The tourism industry of Pokhara is facing great economic loss in recent years. Tourist numbers are not encouraging. So we should make efforts to attract more visitors by promoting our destinations and activities on offer. It is also crucial to protect our environment. 

Krishna Prasad Aachary, Vice Chair, Trekking Agent’s Association of Nepal, Gandaki

 To celebrate World Tourism Day, we recently conducted a hiking program in marginalized villages of Pokhara. In the course, we discovered that many of the famous routes favored by foreigners had collapsed. This was due to the lack of maintenance and unmanaged development activities. But There are still opportunities to set new trekking routes and attract visitors. We have already made plans to identify new hiking trails around Pokhara to showcase the city’s natural beauty. 

Kamala Giri, Secretary General, Nepal Association for Travel and Tours Agencies, Gandaki 

To mark the World Tourism Day, we have decided to maintain greenery around Pokhara. Today, we planted almost 200 tree saplings around Pokhara Tourist Bus Park. We hope this initiative from our part will encourage the local government to consider Environment Impact Assessment while implementing construction related activities in Pokhara.

Thaneswor Baral, Handicraft Association, Gandaki 

I sell and export woolen craft. But these days, I feel there is an immense shortage of local wool due to the shortage of Himalayan Goats. Until a few years ago, I used to import only 50 percent wool for craft making purposes. But these days, almost 90 percent of the wool needs to be imported. The impacts of environmental degradation and climate change have hurt businesses like mine.

For the same reason I want to show my solidarity to this greenery campaign on World Tourism Day. 

Naresh Bhattarai , Restaurant and Bar Association Nepal , Pokhara 

Greenery and calm natural resources is one of the most important factors that influence tourism. The length of their stay also depends on what attracts them the most. In my experience as a hotelier, I have found that most guests want a clean and calm environment along with authentic food and culture. For the same reason, Pokhara has been hosting more tourists in comparison to other cities. But these days, haphazard development works have ruined the image of Pokhara. So I wholeheartedly support the “Green Pokhara” campaign. 

The price of gold has dropped by Rs 1, 400 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 109, 600 per tola today. It was traded at Rs 111, 000 per tola on Wednesday.

Meanwhile, tejabi gold is being traded at Rs 109, 100 per tola. It was traded at Rs 110, 450 per tola.

Similarly, the silver is being traded at Rs 1,370 per tola today.