Cover Story (Spotlight Weekly)

NRN CONFERENCE
Overtures From Overseas

In an unprecedented gathering in their motherland, Non Resident Nepalese (NRN) have called for changes in policies and legislations to facilitate their investment here. Coming at a time when Nepal is passing through arguably the most difficult period in its history, the propositions for investment and assistance from the Nepalese Diaspora living in different corners of the globe has, indeed, injected a much-needed relief. The beleaguered government, too, seems to have gone all out to woo these potential investors. But lost amid this debate is how come the NRNs feel their investment is being obstructed by present system when even foreigners have come to invest here. When they have not yet exercised the provisions in the existing Immigration rules, which provide them 10-year visa and allows them to conduct business here, it would be premature to seek further facilities. However, their overtures have come at a crucial time and their help will be most welcome

By SANJAYA DHAKAL

From a restaurateur in London to a civil engineer working in Canada and from a leading actress in Bollywood to a manufacturer in Qatar – the Nepalese Diaspora have engaged in various professions from Tokyo to Toronto.

In the first-ever NRN conference held in Kathmandu (October 11-14), the Nepalese from different walks of global life came together to make a joint commitment to help their motherland at a time of great need. Besides, as Nepalese living in the country are facing tough time, the offer of hand from their brethren is definite to act as a balm not only for business but also for brotherhood.

In the past couple of years, Nepalese people have increasingly appreciated the contributions made by Nepalese working abroad. While in the previous years those choosing to go abroad were likely to be seen as going there for their personal gains, now the people have witnessed how the remittances from Nepalese working abroad, particularly the Gulf region, have saved their economy from complete disaster. The remittances are worth almost one billion dollar per annum.

With the worsening insecurity in the country, more and more people have started to emigrate due to vanishing opportunities back home.

If one traces the history, the emigration of Nepalese started nearly 200 years ago after the Sugauli Treaty between Nepal and then British India. Nepal has provided manpower services to foreign countries ever since. But that was mainly for military purposes. It was only after the introduction of democracy in 1950 that Nepal finally opened itself to outside community. Slowly, the people began to get foreign exposure. But it was not before 1960s and 1970s that considerable number of Nepalese began to go overseas.

After the restoration of democracy in 1990, the number of such emigrants grew by many folds. In the past couple of years the trend of youths going abroad to work has increased astronomically coinciding with the intensifying insurgency in the rural hinterlands.

And now it appears it is the payback time. The NRNs, who hitherto were known merely as a community that enjoyed gossiping about politics back home every time they gathered, organized a unique conference to discuss how they can help their motherland. This time around they discussed how they, as a community, could come together to help in the development process of Nepal.

Who Are NRN?

This was probably the most frequently asked question during the four-day conference. In the absence of proper legally established definition, NRN were loosely used to indicate any Nepalese who have lived abroad for more than six months. In fact, one of the primary objectives of the conference was to arrive at agreement on the exact definition of the terminology.

Mathema : Restaurateur from UK

Analysts say there are two kinds of Nepalese Diaspora –NRN and PNO (Person of Nepali Origin). The NRN constitute those people who have lived abroad for more than 183 days and are working there in various fields but still hold Nepalese citizenship and/or Nepalese passport. Unlike that PNO consist of such people who can trace their origin to Nepal but, now, have obtained citizenship of the country of their domicile and has only the emotional and/or cultural link with Nepal.

In the context of Nepal, the NRNs grossly outnumber PNOs. According to reports there are 1.2 million NRNs (including PNOs) living in 40 different countries around the world. And this number does not include SAARC countries. In India alone, it is estimated that around 1.5 million Nepalese work. Nepalese are working in places like the USA, UK, Germany, Gulf countries, Australia, Japan, Malaysia, South Korea etc.

NRN Conference

With the motto of “For Nepali By Nepali” the conference kicked off on October 11 with King Gyanendra himself gracing the inaugural function. Over 200 NRN delegates coming from 30 countries and equal number of Nepalese participants discussed on varied subjects ranging from tourism and hydropower to infrastructure and IT.

“The NRN are willing to invest in Nepal provided legal and other facilities. We are willing to lend our hand in the process of economic transformation of this country. At a time when foreign investment is declining due to prevailing situation, the government should take advantage of this willingness displayed by NRN,” said Dr. Upendra Mahato, president of NRN-International Coordination Committee (ICC).

Several individuals presented around 40 working papers during the conference. As it was jointly organized by Ministry of Foreign Affairs, Federation of Nepalese Chamber of Commerce and Industry (FNCCI) and NRN-ICC, the government lent its ear like never before to the concerns and demands of the NRN community.

“The government will welcome the NRN with open arms. The government will frame policies based on the recommendations forwarded by this conference,” said Prime Minister Surya Bahadur Thapa addressing the closing ceremony. Finance Minister Dr. Prakash Chandra Lohani added, “The government will make policies to facilitate the NRN investment.” He said that the government would make framework for legislative support to the NRN community within the next four months based on their recommendations. He hinted of providing concession 10-year visa as well as NRN/PNO card to them.

The commitments made by the government came as sweet music to the NRNs. “The conference has been very good and successful. We are encouraged by the positive reaction from the government towards our recommendations,” said Bhim Udas, international coordinator of NRN-ICC. “Especially, the response of the government on possibilities of providing NRN/PNO card and the promise of treating NRN at par with foreign investors and according similar facilities has encouraged us.” Meanwhile, the NRN-ICC and FNCCI signed a Memorandum of Understanding (MoU) to allow the federation to carry out the follow-up on behalf of the NRN to continue lobbying for legislative and policy support.

“We are happy with the conference. It gave us an opportunity to know that Nepal and Nepalese recognize our contributions,” said Ram Pratap Thapa, a delegate from Germany. Thapa is a renowned Nepalese in Germany and now honorary consul general. “The facilities in visa procedures will go a long way in luring the community.”

Dr. Ram Sharan Mahat, former finance minister, says that during his tenure two years ago, the government had initiated efforts to tap the potential of the NRN. Dr. Mahat is one of the few individuals who fathom the great potential NRN community in the economic transformation of Nepal. “In the budget itself the government had expressed its desire to lure NRN investment. I hope the conference will boost the investment in the country,” said Dr. Mahat.

Will The NRN Investment Flow?

The NRN community has put forth two caveats for the future investment in Nepal. The first one concerns the guarantee of peace and security. This is not only their concern but the one shared by all 24 million Nepalese people plus the international community. Not much the government can do in this front than what it is already doing.

The second one is the legal facilities and amendments in laws. There is a quarter here who believes that there is no need to provide any more facilities than is already provided. Those from this quarter point to the provision relating to visa for Non Residential Nepalese included in the Immigration Regulation by virtue of its amendment on Ashad 3, 2059. The provision was inserted in Rule 10A which is as follows: “A Non residential visa may be given to foreign national of Nepalese origin and their family for the purpose of residing in Nepal or carrying out business or trade or studying or teaching or carrying out research in Nepal. Such shall be provided for the period not exceeding ten years. Such period may be extended as needed."

But a year after this provision was introduced, there is not much sign to get encouraged. Apart from a big media investment in the period, much of NRN community has not come forth. “There is an ample opportunity for NRN to exploit this regulation, which was introduced after much lobbying with the government last year. In fact, I don’t see any legal obstruction for NRN to invest and do business here because basically they are Nepalese citizens. But the PNOs might require to take advantage of this new regulation,” said Gandhi Pandit, a lawyer, who has been involved in NRN issues for long (see box interview). “So far as their demand for dual citizenship is concerned, that is an altogether different matter requiring changes in constitution.”

But NRN sees it differently. “At present, if we make an investment it would be like making investment on individual basis. There is no legal definition of NRN and we are not entitled to facilities. I think a lot of NRN can be lured to invest if they are provided with special recognition and clear legislations,” said Dr. Upendra Mahato. “An NRN act that embraces all aspects of this community – their legal status, visa facilities, investment opportunities, repatriation of profit, permission to operate bank accounts, permission to buy/sell properties etc – is the need of the hour.”

Binod Bahadur Shrestha, president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), is confident that legal facilitations would open the gate for NRN investment. “Just like in India and China, where the non-resident communities have invested heavily, we can also tap the resources, knowledge, expertise and experiences of our brothers and sisters. We should not lose any more time in this regard,” he said.

But not everyone is upbeat. “I am not sure that NRN community is in a position to make big investments. They might be able to attract their foreign partners for investment but very few of them have enough resources to make significant investment,” said Pandit.

As such, one has to study seriously before providing them with facilities like repatriation of profit because there is also a danger of capital flight as many NRN/PNO might take undue advantage of such likely facilities to just sell off their ancestral properties and take back the convertible currency away. In the end, the volume of capital that will fly away could exceed the incoming ones.

NRN community, however, is emphatic about their intention. “Provided proper atmosphere we are willing to invest here and create opportunities,” said Dev Kaji Dangol, who runs a trading house in the USA and has currently started a manufacturing company in Qatar.

And then there are other NRNs who are not too sure about investment here. “Well I am not sure whether I will invest just yet. But I am confident that conference like this will raise our concerns and open up avenues for future,” said Beena Mathema, who runs a restaurant called Broadstair Tandoori in Broadstair, Kent in the United Kingdom. Mathema, who was in Kathmandu to visit her relatives, was excited by the NRN conference, though she did not participate. “This is a good beginning.”

Conclusion

Apart from prospects of investment and business expansion, the NRN conference was also remarkable in another front. It provided a unique opportunity to the community to renew their attachment to the culture and tradition of their native.

“The Nepalese culture and upbringing has helped me a lot in my career of acting in India,” said actress Manisha Koirala, who also revealed that she plans to produce a movie highlighting the culture of Nepal.

By committing that they will hold similar conference every two years from now onwards, the NRN community has proved that this is not an isolated bubble that will burst. Hopefully, the investment will flow to this cash-strapped Himalayan kingdom. And along with investment, hopefully, the global expertise and experience gathered by the community will also be utilized here.

Recently, when the chief minister of Indian state of Gujarat Narendra Modi organized a Global Investors’ Forum called Vibrant Gujarat in Ahmedabad, the proposals worth IRs 550,000 million were registered with the government in the form of MoUs and concrete business schemes in various sectors – a good part of that by non-resident Gujarati community. This was a major boost to Modi government of the state that is battered by religious strife. While the NRN conference in Kathmandu may not have provided similarly spectacular results, one would at least hope that it will not have been in vain.

Recognition Of NRN Achievers

The organizers recognized the following eight NRN individuals for their respective achievements in their adopted country.

1.              Dr. Upendra Mahato (Russia)
2.              Bhim Udas (WFP)
3.              Manisha Koirala (India)
4.              Dr. Dev K. Dangol (Qatar)
5.              Ram Pratap Thapa (Germany)
6.              Dr. Raghab Dhital (United Kingdom)
7.              Shyam Dhoj Karki (United States of America)
8.              Sri Krishna Sivaskul (Thailand)