Chandra Prasad Dhakal
I am deeply honored to be here to address the second edition of the Nepal-China Business Summit. In September 2023, we organised the first edition at this very venue. On behalf of the FNCCI, the apex body of the Nepalese private sector, and the entire business delegation, I would like to extend my warm greetings to all of you.
I am grateful to the governments of China and Nepal, as well as the embassies of both countries, for their valuable support in organizing this event. My sincere thanks also go to CCPIT for being a longstanding partner since 2002 and a co-organizer of this event.
I would like to thank the Right Honourable Prime Minister of Nepal, Foreign Affairs Minister of Nepal, and Honorable Deputy Minister of China for gracing this occasion with their presence. Last year, I promised that, through the FNCCI, I would do my best to improve Nepal’s investment climate. Today, I am pleased to inform you that significant progress has been made since then.
The Government of Nepal, with FNCCI’s active initiative, has amended eight investment-related laws to create a more investor-friendly environment. Additionally, the Cabinet has endorsed the Bilateral Investment Agreement (BIA) framework, another step to facilitate foreign investment. These reforms make it easier for foreign investors to invest in Nepal with confidence and clarity.
Nepal’s external sector indicators are also promising. Foreign exchange reserves increased by 9.4%, reaching 16.60 billion dollars. These reserves are sufficient to cover 14 months of imports. I would also like to inform that Nepal’s country credit rating has been done for the first time. It is BB minus with a stable outlook. This rating is considered satisfactory when compared to other South Asian countries.
I am proud to inform you that multinational companies operating in Nepal are enjoying a good rate of return on their investments. Compared to its two giant neighbors, Nepal may seem small, but globally, it is the 49th largest country in terms of population. In the last 25 years, people living below the poverty line has decreased by 5.5 million. This indicates increasing purchasing power among the people.
Nepal has duty-free market access to India, China, the EU, the US, and other developed countries. China is Nepal’s second-largest trading partner in terms of imports. I welcome the Chinese government’s decision to grant zero-tariff treatment to 100% of tariff items of products from all least-developed countries that have established diplomatic relations with China. This will help increase Nepali exports to China, which currently account for around 1% of Nepal’s total exports. Nepal benefits from a demographic dividend of a vibrant, hard-working young population. Blessed with natural resources and a median age of 24, Nepal’s young population is a significant asset. Nepal is one of the world’s richest countries in energy resources. I urge the business community to invest in Nepal’s energy sector.
The Nepali hospitality industry is ever ready to welcome Chinese tourists, with lots of standard hotels to cater to their needs. With beautiful landscapes, rich cultural heritage, and unique experiences, Nepal is an attractive destination for global travelers. There is immense potential to invest in hotels, resorts, theme parks and adventure infrastructure like cable cars. In this regard, we welcome China declaring 2025 as ‘Visit Nepal Year in China’.
Infrastructure development is another key area where we seek Chinese expertise and investment. Nepal desperately needs better roads, railways and airports to boost connectivity and economic activities. I sincerely request both Governments to successfully operate flights between Chinese cities and Pokhara and Bhairahawa International Airports, the newly built airports in Nepal. I also request the Governments to build infrastructure and operationalize the ports as per our Trade and Transit Agreement.
Apart from tourism and infrastructure, there are opportunities in agro-processing, manufacturing, mining and ICT sector.
Both FNCCI and CCPIT have been working closely for two decades and will continue exploring trade and investment opportunities. FNCCI has established an FDI Help Desk, which provides one-window facilitation support to foreign investors. We plan to expand this service further to provide support to potential investors and existing companies.
We are delighted that Rt. Hon’ble Prime Minister and Hon’ble Ministers have kindly graced this programme today, to encourage the private sectors from both Nepal and China to work together for mutually beneficial business relations.
I am confident that the agreements signed during the Rt. Hon’ble Prime Minister’s visit will further strengthen our economic relations.
I would like to extend my sincere gratitude, especially to the Excellency Ambassadors of both Nepal and China, and the leadership of CCPIT, for facilitating the organisation of this important event and for extending warm hospitality to the official delegation of Nepal.
Lastly, on behalf of FNCCI and the entire Nepali business community, I would like to invite the Chinese business community to explore further business opportunities in Nepal, both in conventional and new areas. We are keen to invest together in joint venture projects with China.
FNCCI is always ready to cooperate in any way to further promote the economic relations between Nepal and China.
Remarks by FNCCI President Chandra Prasad Dhakal at the Nepal-China Business Summit, during the official Visit to China of Rt. Hon’ble Prime Minister of Nepal Mr. KP Sharma Oli, 04 December, 2024, Beijing, China)
