Third Investment Summit concludes

The Third Investment Summit concluded in Kathmandu on Monday, approving investments for various projects. The two-day event resulted in the Department of Industry approving investments totaling Rs 9.13bn across four projects.

The breakdown of these investments includes Rs 6bn for establishing an investment company in Bhaktapur, Rs 3bn for a business complex in Kathmandu, Rs 76.6m for a 200 KW hydropower project in Kailali, and Rs 62.5m for hotels and restaurants in the Lalitpur district. This information was provided by Shankar Singh Dhami, Director of the Foreign Investment and Technology Transfer Unit at the Department of Industry.

Additionally, the department has implemented a new system for approving foreign investments through an automatic route. This system allows foreign investors to apply for establishing a new company with 100 percent ownership, a joint venture, or capital investment in an existing company via an automated process. Investors can apply starting today and receive a foreign investment approval letter immediately upon application. Notably, no minimum investment limit has been set for foreign investment through the automatic route for information technology-based industries. This streamlined process is expected to save investors time and money when investing in Nepal.

The Federation of Nepalese Industries and Commerce (FNIC) and the Indian Industries Association (IIA) also signed a Memorandum of Understanding (MoU) to promote bilateral cooperation. The MoU was signed by FNIC President Khimlal Bhandari and IIA Chairperson Anuj Kumar Garg. According to FNIC General Secretary Khim Narayan Parajuli, the agreement aims to encourage cooperation and shared interests in investment, trade, and industrial development. This collaboration between private sector organizations from both countries is expected to facilitate trade.

On the same day, FNIC signed another MoU with China’s Dongguan Jinyang Lighting Co, Ltd. to establish cooperation for investment facilitation in Nepal. Additionally, Australian investment has been secured to open a luxury resort near Rara Lake in Mugu. The agreement was reached with the Expert Group of Australia, with Badri Aryal and Sanjeev Sharma signing on behalf of the Expert Group and Abhisek Bikram Shah representing Rara Holdings Resort Pvt. Ltd. The resort, to be constructed on 80 ropanis (approximately 10 acres) in Murmatop of Chhayanath Rara Municipality-9, will have an initial investment of about Rs 700m in the first phase and around Rs 400m in the second phase, according to Shah.

Finance Minister Barshaman Pun stated that the Third Investment Summit was a grand success, attributing the achievement to the strong participation of development partners and the interest shown by investors in the presented projects.

In a sideline meeting held earlier today with representatives from the World Bank, the Asian Development Bank, the International Monetary Fund, the United Nations Development Programme (UNDP), and various ambassadors, Minister Pun noted that the event's success reflected Nepal's potential as a key destination for global investment. He highlighted that the enthusiasm and support of these development partners underscored Nepal’s growing appeal to the international investment community.

“The significant presence at this Summit confirms that Nepal is among the most promising emerging destinations for investment,” said Minister Pun. He further expressed his government’s commitment to strengthening ties with development partners in the coming days, aiming to foster an environment that encourages investment.

He emphasized that the participation of major political figures, including opposition leaders, during the Summit signaled a unified effort to create a favorable atmosphere for investment in Nepal. This cross-party cooperation contributes to the stability and predictability that investors seek.

Minister Pun thanked the development partners for their remarkable presence and support, indicating that such involvement played a key role in the Summit’s success. He also noted that the Summit’s projects had garnered significant attention, showing investors’ genuine interest in the investment opportunities in Nepal.

Overall, the Minister expressed satisfaction with the Summit’s outcomes and reiterated his commitment to building stronger partnerships with development partners, ensuring that Nepal continues to be an attractive and conducive location for investment.