Nepal has high potential of attracting investment

A senior United Kingdom official has said that Nepal has high potential of attracting foreign direct investment (FDI) in some distinct areas if some key issues related to tax and investment safety are duly addressed. Harjider Kang, His Majesty’s Trade Commissioner for South Asia who was in Nepal to participate in the Third Investment Summit, said he came to Nepal to see and explore the potentials Nepal has in the areas of investment.

Speaking with a select-group of journalists, he said that the two countries are discussing signing a Double Tax Avoidance Agreement in order to attract British investors in Nepal. To this end, he had held discussions with high-level government officials and the governor of Nepal Rastra Bank. 

Kang told journalists that Nepal and the UK are very close in achieving such an agreement. As Nepal already has such agreements with India, Bangladesh and other countries, Nepal can make similar agreements with the UK as well.  According to him, assuring the international investors about the safety of their investment is obviously one of the major issues that the Nepal government should look after to attract FDI.

Investors want to be ensured that their investment is safe, there would not be changes in the laws related to tax and there would not be nationalization of companies, he said. If those issues are looked at, he said, UK companies want to come to Nepal. He further added that their messages have been well understood by the Nepal side and issues will be dealt once two sides back to the negotiation table.

According to him, tourism is one of Nepal's core areas which has the high-potential of attracting foreign investment. It is a distinct area so Nepal should tap this opportunity, he said. Other possible areas, according to him, are Information Technology, financial and pharmaceutical areas.