Investment Summit
The government is preparing to host the third international investment summit. It is okay but is there an environment for attracting foreign direct investment in the country? Are our laws and government policies suitable for foreign direct investment? When we want to receive services from government offices, it is almost impossible to get work done without paying money from under the table. There are many hurdles in running industries in the country. Perhaps, it is enough to understand South Korean Ambassador Park Tae-young’s quest to the Finance Minister, Barshaman Pun, to introduce investment-friendly policies. When Hyundai Motor Company planned to establish a car assembling plant in Nepal, it faced different hurdles and the Ambassador had to complain to the Finance Minister. We have seen successful models of foreign investment in Dubai, Hong Kong, and Singapore, among other countries. If we are unable to develop an investment-friendly policy, we can copy the policies adopted by the above-mentioned countries to attract foreign direct investments. Moreover, we have to adopt a policy for protecting and preserving local industrialists and investors as well. We saw displacement of local industries when Dabur and Unilever company stepped in Nepal, all the soap industries, toothpaste and toothbrush industries were shut down. Those local products could not compete with the giant foreign companies. Accordingly, some Indian multinational companies are eyeing the agricultural sector. If they are allowed to come to Nepal, these industries are going to sweep away our small farmers involved in dairy products and other agricultural products. We believe that the government should protect the local farmers and local investors as well. The liberal economic policy should be abandoned by introducing a mixed economic policy. These days, the fish farmers are organizing demonstrations as the local fish farmers didn’t get a market due to fish being imported from India. The first duty of the government is to curtail imports of fish from India. Also, to encourage local farmers, the government should restrict imports of vegetables from India. The era of an open market economy has already failed.