Meet Investment Pledges

The recently concluded 3rd Nepal Investment Summit 2024 has been declared a resounding success. Nepal held the first investment summit in 2017 and the second in 2019. By organising such a summit, the country has sent a message that not only is it earnestly eager to roll out the red carpet for the foreign investors but also fully committed to securing their investment and facilitating their endeavour here in a win-win manner. During the summit, the delegations from China, India, Kuwait, the UAE, the UK, the USA, and the World Bank group discussed areas of cooperation and expressed their interest in exploring investment opportunities here. They also acknowledged Nepal as an attractive investment destination and expressed their commitment to support Nepal’s sustainable development initiatives. 

What’s more, at the summit, more than a dozen of MoU deals were signed, including one between World Association of PPP (Public-Private Partnership) and National Association of PPP professionals and practitioners for advancing PPP in Nepal. The two-day summit also saw eight different agreements signed, with the Department of Industry approving the investment worth Rs. 9.13 billion by implementing the system of approving foreign investment through automatic route. And, letters of approval have been handed to three investors, according to which the investment of Chinese companies amounting to Rs. 6 billion has been approved. Similarly, the investment of Australia’s S.J.G. Investment Company of Rs. 3 billion and Achilles Energy UK’s investment of around Rs. 135 million has been approved. 

An agreement has also been signed between the Hydroelectricity ad Development Company Limited (HIDCL) and the Non-Resident Nepali Association (NRNA) with the aim of increasing the investment of Nepalis working abroad in the hydropower sector. In line with the agreement, the HIDCL will invest in the construction of 70.3-MW Simuwa Khola hydroelectric (hydel) project and 77.5-MW Ghunsa Khola hydel project with the concept of Remit Hydro. In addition, billions of rupees in foreign investment have been pledged in tourism sector, mainly in the construction of hotels.

Upon conclusion of the summit, Finance Minister Barsaman Pun highlighted that in alignment with previous commitments to foster an investment-friendly environment, amendments to nine laws through the Ordinance have bolstered would-be investors’ confidence. He has also reiterated his commitment to enhancing the business climate through further policy and legal reforms as well as simplification of procedures in the future if needed. This is a testament to the government’s steadfast commitment to policy reform, stability, and prompt resolution of any encountered challenges, fostering a conducive investment environment. With huge sums of money pledged for investment, there’s no doubt that the summit has raised the country’s standing as a promising investment destination. 

Now that the summit is over, what we should start focusing on is how to translate that commitment into reality. In the prior such summits too, similarly huge money was committed, but only a tiny fraction of that money really materialised. Why and how that happened is the question that deserves critical discussions and answers. To be sure, merely hosting a summit is not enough; diligently working to translate the pledge into something tangible is equally important. Learning from the past setbacks and devising new action plan to deal with the situation in case such obstacles emerge again is something that must feature prominently in the government’s handbook. Things have improved markedly since we hosted the second summit in 2019 – there has been political stability, infrastructure has improved, among others. So there’s no reason to doubt that the summit will bring tangible results.