Ambassador Mohan Krishna Shrestha

President
Center for Diplomacy and Development, Nepal 

Kathmandu: The Association of Former Career Ambassadors (AFCAN) and Center for Diplomacy and Development are effortful to promote knowledge and experience on diplomacy and in other issues of topical importance to the people through various means.

The seminar held July 12, 2023, is also a part of this effort.

It is said that for small nations, an effective and pro-active diplomacy is a necessity. It has proven so while we assess the current international situation. Dangers from political problems are looming in many parts of the world.

Today’s seminar topic is a very important one. After sometime, we will be listening, from experts, various aspects of foreign direct investment in our country. We fully understand that Foreign Direct Investment (FDI) has many challenges in its implementation.

At the same time, we also have huge potentiality for incrementing FDI in our country.

I remember it was in 1996 while I was working in the United Nations Division of the Foreign Ministry, a new concept of economic diplomacy was added to the objectives of our non-aligned foreign policy. That new policy had six objectives like the promotion of tourism, exports, FDI, foreign employment opportunities, development of water resources and foreign aid. These all objectives hold much significance in our national economic development process. These are the areas which can play a catalytic role as engine of growth in the country. These are the areas which can create huge employment opportunities and raise revenue for the government.

It is, therefore, very important that economic diplomacy must be implemented in an effective way. Government and private sectors must work assiduously for the promotion of economic diplomacy.

Foreign Direct Investment feature as one of the important objectives of economic diplomacy. Twenty-seven years have passed since our country has aimed to import FDI. Latest available figures indicate a total of 5,692 industries have been set up with FDI with investment of 439.78 billion rupees. FDI industries have created more than 300,000 employment opportunities. FDI is coming from more than 100 countries to Nepal. FDI has touched every aspect of the national economy from manufacturing to service to hospitality and to other sectors. Efforts of the government and private sector must continue in coming days also for the promotion of FDI in the country. It is a process which has no ending.

While living in Paris, one day, I met Ambassador of Cambodia Mr.Kich Uman. He was a senior Ambassador having lived in France for more than 11 years. During our talks, he told me that Cambodia, slightly bigger in size than our country and with one third of our population, attracts FDI worth 8 billion dollars a year. He was not yet happy with such huge figures. He further said, Excellency, we are taking actions to increase more FDI in our country.
It came to my mind, Cambodia, a country devastated by30 year’s internecine war and with less hospitable atmosphere could do so much.

And why can’t we? Where are the problems. What actually hinders, in our country, for increasing FDI. This natural question came to my mind. With enormous resources both natural and human, Nepal possess, in fact, abundant resources for development i.e. agriculture, bio- diversity, ITC. tourism, water resources and many others.
In 2017, An investment summit was organized at Soaltee Hotel where I also attended. One lady representative of an international financial institution, while delivering her speech, indicated that bureaucratic entanglements, in our country, are too many to count. She also gave example of Cambodia where FDI projects are approved within days.
Government welcomes foreign investors as valuable guests. To my mind, it is therefore, very much necessary that our country also value FDI as a source of capital investment, technology transfer and great knowhow. Let us create a more hospitable atmosphere for FDI import.

I understand that in South Asian region, Nepal receives less than 1 percent of the global FDI resources. There is enormous FDI capital in the world market. We need skill to tap those. Our FDI provisions like non-nationalization, repatriation of capital and profits, tax holidays, infra-structure facilities, abundant labor resources and favorable climatic conditions are not less than those found in any other country.

Yet in 27 years, we have not been able to attract half FDI amounts which Cambodia attracted in one year. This is a very serious question if we are to take in mind.

Hence, is not it proper that we also learn from other countries who have been successful to attract FDI in great figures. Just making good policies, we cannot sit singing laurels. Rather we must take appropriate actions for their effective implementation. We must also promote FDI projects which uses our available raw materials and create employment in rural areas Such effort would bear fruits for our country and people.

# Speech delivered, July 12, 2023, by Ambassador Mohan Krishna Shrestha-the founder President of Center For Diplomacy and Development (CDD) at a program jointly organised by the CDD and the Association of Former Career Association of Nepal (AFCAN) on “ Foreign Direct Investment In Nepal: Challenges and Opportunities”.
The Chief guest of the one-day seminar was Nepal’s Foreign Minister N.

P. Saud and the Guest of Honor was His Excellency the Indian Ambassador to Nepal, Shri Navin Srivastav: Ed. Upadhyaya N. P.