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FOREIGN INVESTMENT |
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FOREIGN INVESTMENT |
Security Conscious The deterioration of law and order could repel foreign investment By A CORRESPONDENT Between 1991 and 1995, Nepal witnessed an unprecedented inflow of foreign investment. However, international interest in Nepal has steadily declined with the escalation of the Maoist insurgency. British business is noticeably under-represented in Nepal. "British investors are keen to invest in Nepal but they are nervous about the increasing Maoist activities," said British Ambassador to Nepal, Ronald P. Nash. Though Nepal and Britain enjoy a century long relationship, Nepal has been unable to attract significant British investment. In the last decade, efforts have been made to expand trade relations between the two countries, but ultimately the British business community does not appear to have confidence in Nepal. In the old days it was high mountains that stopped foreigners entering Nepal, today fear of losing one's shirt appears to be the biggest obstacle.
"Nepal's deteriorating law and order situation is discouraging foreign investors," Ronald P. Nash told the fifth annual general meeting of the Nepal-Britain Chamber of Commerce and Industry (NBCCI). However, last year's inauguration of the NBCCI office, located inside the British Embassy, indicates Britain's desire to expand existing trade between Nepal and Britain. Nepali business people are also trying to encourage trade with Britain. "We have been organizing the British Pavilion in the Himalayan Expo, the annual trade fair, for the last couple of years, to promote British investment in Nepal," said Rajendra Khetan, vice president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), and the President of NBCCI. "Despite our age old relationship and the vast amount of mutual goodwill, the amount of trade between the two countries, as well as the volume of British investment in Nepal, has been well below what would have been expected," complained Khetan. The potential for attracting British investors to Nepal, is immense. There are a variety of sectors, including hydropower, tourism and handicraft, that should appeal to British business. The FNCCI initiated a program to promote British wool for making Nepalese carpets, with the idea that the finished product would be sold in British markets. Another initiative came from a Scottish trade group, who invited a group of Nepalese to visit Scotland, in order to identify potential partners for a joint venture in water resources. |
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