No friendly environment for FDi

The government is committed to hosting the third foreign direct investment summit in March but why the previous two summits could not attract the foreign direct investment as expected, without evaluating the reasons, the next summit is going to be held.

Local investors are saying that there is no investment-friendly environment in Nepal. Political instability, lack of a long-term investmentfriendly policy, lack of continuity in works started by the previous governments, corrupt bureaucracy and political sector, among others, are the major hurdles for attracting foreign direct investment.

For example, one government handed over the Budhigandaki hydropower project to a company in China, and the successive government, without giving any reason, cancelled the deal. Again, another government gave the same project to the same Chinese company, and again, the next government decided to construct the project by itself. This is a childish policy.

First of all, a whitepaper should be drafted in participation of all the political parties. The modality of those successful countries able to attract foreign direct investment should be studied and an environmentfriendly policy should be drafted, which should be acceptable for all the political parties.

The political parties should guarantee that at least for ten years, the investment policy will not be changed.

In the meantime, the areas should be identified for foreign investment. Foreign investment should be prohibited in the area where our local investors are found capable.

For example, Nepal was self-reliant in producing soaps and toothpaste, now, our local industries have been displaced by Unilever and Dabur like giant Indian companies. The Indian ginats are trying to enter into the agricultural sector. If allowed to invest in Nepal, all our farmers will lose their occupation. Accordingly, security strategy is also important while opening up foreign investment. The government has developed the mentality of handing over the three international airports to an Indian company, the Adani Group. This decision will be counterproductive for Nepal as along with handling the international airports, the Indians can monitor every detail of the air travelers. Such possible impacts should be considered seriously. Moreover, good homework is needed before inviting foreign direct investment.