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Prime Minister Pushpa Kamal Dahal said the Investment Board Nepal would be developed as an efficient institution.

Receiving an annual report of the Board this morning, PM Dahal said it would be advanced as an effective and efficient institution capable of best utilizing the knowledge and experience of experts.

On the occasion, PM Dahal directed the Chief Executive Officer (CEO) of the Board to present a necessary framework containing policy, legal and institutional measures for reforms.

The Prime Minister said that the government was mulling to develop the Board as a prime institution to build strategic infrastructure projects.

Saying that the office of the Board has done a great deal in the areas of coordination, collaboration and partnership, Dahal urged the Board to bring the institution to a new height and further contribute to the prosperity and development of the country.

He expressed the commitment on behalf of the government to provide necessary support to the Board in its future efforts.

Prime Minister Dahal also said that his optimism that the foreign direct investment along with private sector investment can be amassed for the development of mega infrastructures in the country by capitalizing the ground works of the Board office last year.

He said that the government's commitment to gradually incentivize private investment in development.

PM Dahal further said he was excited to get response from some international-level organizations about the professional delivery of the Board office.

The 'screening process' adopted by the Board in project development was scientific and contextual, Dahal commented, asking the Board to receive support from the concerned ministries in identifying and structuring projects.

Also speaking on the occasion, Board's Chief Executive Officer Sushil Bhatta said that the Board's strategic plan, mandate, business plan and work progress against the budget and program of the government.

The progress report of the Board has highlighted its performances in project management, investment promotion, institutional development and coordination, collaboration and partnership.

CEO Bhatta also briefed the Prime Minister about key works to be carried out in the current fiscal year.

There is a practice where the CEO presents the annual progress report of the board before the Prime Minister and Board Chairperson and a performance contract between Board Chairperson and CEO is signed.

Janamat Party Chairman Dr CK Raut said that the problems the farmers have been facing every year should be resolved.

At the organization expansion and training program of the party held in Rajbiraj, Saptari on Saturday, he said the farmers in Madhes have been denied access to fertilizers in the time of crop plantation which he noted should be addressed.

Terai is a fertile land for food production, he said, adding well-placed arrangement of irrigation facilities is a must to increase productivity. 'Farmers in Terai are upset in the plantation time in the dearth of irrigation water', he said.

On another note, he said the syndicate system prevailing across the country has blocked the establishment of big industries.

Claiming that he took some efforts for the setup of a chemical fertilizers factory in Nepal with support from the Indian and German governments, Raut said India had positively responded to the initiative.

He underscored the need of creating job opportunities within the country to check the exodus of youths to foreign countries for employment.

A vital form of diplomacy, economic diplomacy is the full spectrum of economic tools of any country to safeguard its national interest. Broadly, it executes ‘rules for economic relations between states’ at the international level by employing economic resources, either as rewards or sanctions, in pursuit of a particular foreign policy objective. 

Different agencies of government play a vital role in international economic diplomacy apart from non-state actors such as non-government organizations (NGOs), businesses and investors. 

The phrase economic diplomacy is a combination of economic and diplomacy, therefore, the foundation of economic diplomacy is taken as economic theories and diplopic political theories (Pokharel 2014). Of late, economic diplomacy has become a prominent activity in the diplomacy of nation states and international organizations. Take India, for our neighbor India, which has been using economic diplomacy as a core component of its foreign policy.

Economic diplomacy has become the primary means of penetrating the world market, where economic aspirations like foreign assistance, foreign employment, foreign investment (direct or porthole) and foreign trade and tourism are pursued through diplomatic skills. 

Economic diplomacy is also an indispensable instrument for securing Nepal’s foreign policy objectives and economic development. At present, the government engages in economic diplomacy/development at three levels—bilateral, regional and multilateral. Nepal needs to focus on facilitating trade and business investment by promoting domestic tourist destinations through high-tech means like the use of new science and technology tools.

A least developed, sovereign and independent country, Nepal is lagging behind in the race for development. If used skillfully, foreign policy (with main thrust on economic diplomacy) can speed up the national development process as conventional diplomacy has failed to deliver, by and large. At present, we are facing a volatile economy and unstable political situation, which demands using diplomacy as eyes and ears in the national interest. 

Our current economic indicators have laid bare several flaws in capital endowment, slacking foreign trade, diminishing exports and increasing imports and mostly ineffective implementation of policies.

According to World Bank (2019), Nepal’s export of goods and services was 8.93 percent of GDP while import of goods and services was 42.38 percent in 2019. In such a situation, the government needs to promote exports by exploring potential actors and factors. This can be achieved by mobilizing Nepali diaspora, encouraging private sector investors and prioritizing different trade and export promotion agencies. 

Notably, we have failed to welcome FDI due to an unstable political situation, illiberal policies and investor insecurity. These issues need to be addressed as soon as possible. As we know, components of economic diplomacy have a greater impact and crucial role in strengthening the national economy. 

For achieving desired economic growth, Nepal should conduct its diplomacy by expanding its missions to attract investments. In addition, Nepal needs to introduce investment-friendly Acts and other legal provisions for the creation of a favorable environment for foreign investors and donors.  

In this globalized, liberalized and competitive global market, Nepal needs to be very skillful to pursue effective diplomacy with other nations. It is obvious that none of the states in this globalized world can escape from economic interdependence, so economic diplomacy has become the unavoidable reality of the 21st century in international relations. Nepal should explore opportunities and challenges, and prioritize the issues on execution procedure.

But a number of experts point out that Nepal has not accorded due priority to economic diplomacy.  

Bishwambher Pyakuryal, former ambassador and economist, says economic diplomacy is highly affected by a country’s foreign policy. According to him, the government of Nepal has not taken this form of diplomacy as seriously as it should. As for the way out, he says structural changes are necessary in our diplomacy. 

Purushottam Ojha, a former commerce secretary, says, “Economic diplomacy is vital for promoting national economic interests like trade, commerce, investment, tourism, migration, aid and investment.” But our economic diplomacy and diplomats have failed to protect economic interests.

FDI promotion should focus on enhancing economic development. In line with this, diplomatic missions need to focus on attracting more assistance in Nepal’s priority areas like infrastructure development, employment generation, capacity building and so on. Economic diplomacy should be able to create an environment that is welcoming and friendly for businesses. 

Nepal can learn and adopt different forms of economic diplomacy from different nations. For instance, Switzerland’s strong and effective economic diplomacy has enabled its agency based in Geneva to conduct nearly two-thirds of the United Nations’ business activities. Japan’s foreign policy is aimed at strengthening economic diplomacy as a means of driving economic growth, which is very supportive of overseas business expansion and developing collaboration with diplomatic missions. 

On the contrary, we still struggle in trade diplomacy with neighboring countries, leading to a yawning trade deficit each year. Diplomats must be mobilized and foreign missions expanded to address such issues. 

Coordinated diplomacy between several ministries, including the foreign ministry, as well as private and civil societies is crucial, with the main focus on economic diplomacy. 

Policymakers need to find ways to attract foreign investment and increase export strategy and other forms of economically beneficial exchanges where Nepal enjoys a comparative advantage. Our diplomats and overseas missions must acquire a new global strategy and new skills to make diplomacy effective. Improving managerial capacity, acquiring new knowledge and negotiation skills are a prerequisite for economic diplomacy. 

Economic diplomacy involves using diplomatic skills with economic tools for advancing and achieving the country’s economic and strategic goals. A serious lack of policy coordination among stakeholders for pursuing economic diplomacy has affected the conduct of diplomacy.

Against this backdrop, every concerned agency, including the Foreign Ministry and other government entities like the Ministry of Finance, National Planning Commission, Ministry of Commerce and Supplies, Ministry of Tourism, and Trade Promotion Center should be equally involved in promoting economic diplomacy on a broad level.

President Ram Chandra Paudel on Friday authenticated the bill aimed at taking action against loan sharks.

The President’s Office said that President Paudel certified the bill ‘to amend some other Nepal Acts including Civil Code 2080.

President Paudel authenticated the bill endorsed by both the Houses as per Article 113 (2) of the Constitution.

It will get the legal status after it is published in the Nepal gazette.