Prioritize changing laws to make the Investment Summit a success – myRepublica

Despite recommendations from the private sector to amend around 20 laws to promote both foreign and domestic investment in the country, the government has yet to make any changes. With just a week to go before the Nepal Investment Summit 2024 begins, where the government aims to attract foreign investment, the private sector is concerned about the lack of legal reforms. The government announced the third Nepal Investment Summit 2024 on April 28 and 29, citing insufficient domestic capital for the country’s development and prosperity. Even as the Investment Board Nepal prepares to showcase projects worth billions of rupees at the summit, stakeholders are concerned due to the lack of a legal framework to instill confidence among potential investors. Instead of addressing the necessary legislative changes through parliament, the government ended the winter session without action. Despite the provision to amend laws through an ordinance, the issues raised by stakeholders over the years remain unresolved. Both domestic and foreign investors continue to question Nepal’s investment-friendly legal environment, which is a worrying development. We call on all parties, including the ruling and opposition parties, to prioritize expediting the amendment of crucial laws to ensure the success of this monumental event.

Prime Minister Pushpa Kamal Dahal’s emphasis on providing a safe and investment-friendly environment is commendable. With invitations extended to more than 1,100 potential investors and more than 100 projects identified for presentation, there is a palpable sense of optimism around the summit. From clean energy to tourism, from agro-processing to manufacturing, Nepal offers numerous investment opportunities for potential investors. However, the realization of these opportunities depends on rapid legislative action, as shown by the experiences of the previous summits. The government’s inability to amend the necessary laws promised for revision casts a shadow over the summit’s promising prospects. While pre-event initiatives abroad demonstrate proactive engagement, they ring hollow without the requisite legal framework to support investment efforts. At the heart of the matter lies the responsibility of both the government and opposition parties to put aside party differences and prioritize national interests. The success of the investment summit transcends political preferences: it is a collective effort to usher in a new era of prosperity for Nepal.

Needless to say, the identified projects, ranging from the Nepal-China Friendly Industrial Park to the Upper Marsyangdi-2 Hydropower Project, have the potential to catalyze economic growth and create employment for Nepali citizens. However, achieving this requires more than just rhetoric; it requires enforceable legislation and a favorable regulatory environment. The legacy of past investment summits serves as a poignant reminder of the pitfalls of inaction. While intentions may be noble, they risk being overshadowed by unfulfilled promises unless they are backed by tangible legislative progress. As the countdown to the investment summit begins, there is no room for complacency. The government must speed up legislative change to build investor confidence and pave the way for a successful summit. In this regard, opposition parties must also show their responsibility by lifting their parliamentary obstruction and prioritizing national interests over political mismanagement. We believe that Nepal has the opportunity to position itself as a beacon of stability and growth in the face of global economic uncertainties. The Investment Summit serves as a crucial milestone on this journey, but its success depends on decisive action from all stakeholders.