Bringing In NRN Capital

Despite having abundant natural resources and strategic location, Nepal is grappled with multiple structural problems in attaining the desired level of economic prosperity. The chronic political instability has been often blamed for the economic backwardness of the country. It is true that the instability has knock-on effects on economic development. However, speaking in specific terms, the country faces the shortage of capital, technology and skilled human resources to achieve overall socio-economic transformation. In a globalised and interdependent world, the movements of labour, capital, ideas and new technology have become inevitable phenomena. In early 1990s, Nepal adopted liberal economic policy to benefit from the economic globalisation sweeping the world. Such a policy shift is expected to be beneficial for the Least Developed Country like Nepal located between the two economic powerhouses – India and China. 

Nepal has pursued legal and structural reforms to promote foreign direct investment (FDI) and technology transfer to fuel economic growth. FDI and cross-cutting technology is crucial to build mega infrastructural projects and ensure financial and market access to goods and services. On the other hand, the technology transfer enables the government, industrial establishments and businesses to exchange knowledge, skills, ideas and manufacturing methods among them. It spurs scientific and technological innovation in addition to protecting intellectual property rights and commercialising the technology for the benefit of diverse segments of economy. Against this backdrop, Prime Minister Sher Bahadur Deuba has called upon Non-Resident Nepalis (NRNs) to support for the transfer of capital and technology for the development of the country. Speaking at the Annual General Meeting of Non-Resident Nepali Association (NRNA) and Global Conclave in Kathmandu Tuesday, PM Deuba expressed his commitment to creating environment where the NRNs could safely invest and make a reasonable profit from it.

Successive governments in Nepal have taken initiatives to meet the demands of NRNs and promised to facilitate their investment here. For example, the present government, through the budget statement of current fiscal year, has reduced the limit of investment size from Rs. 50 million to Rs. 20 million and amended the citizenship law to grant citizenship certificate to the Non-Resident Nepalis so that they can invest here without any procedural hassles. Likewise, it has paved the way for the approval of the foreign investment amounting to Rs. 100 million through automated system. A common forum of Nepalis living and working abroad, NRNA has been playing an important role in utilising their experiences, skills and entrepreneurship as well as mobilising the capital and technology for the development of the motherland. The NRNA was involved in the rescue and rehabilitation of the earthquake in 2015 and extended humanitarian assistance during the COVID-19 pandemic. 

In fact, Non-Resident Nepalis are the goodwill ambassadors of the country and should work to encourage the foreign investors to bring in FDI to Nepal. Nepal's foreign trade gets a boost if the NRNs prioritise to using Nepali products abroad, thereby supporting the small and cottage industries based on local labour force, skill and raw materials. Meanwhile, the NRNs should enhance the nation's identity by spreading Nepali language, culture, art and literature abroad. Nepal expects their role in boosting investment, trade and tourism in the international market. Nepal's foreign diplomatic missions should promote economic diplomacy by mustering the cooperation from NRNs. As Nepal government has committed to protecting business and property of all investors, including NRNs, it is imperative on the part of the latter to contribute to Nepal's development and prosperity.