The government is functioning in a hotchpotch style. Months ago the government decided to host the third investment summit. The government also felt that the nation’s laws were not investment-friendly. Therefore, the government decided to amend the existing laws. The government planned to amend laws from Parliament but it failed. Then after, the day when the investment summit kicked off, President Ramchandra Paudel, under the recommendation of the government, issued an ordinance to give the message to the foreign participants that Nepal has an investment-friendly environment. Will the foreign investors be convinced of such an act of the government, we are doubtful. An ordinance is a temporary law. If Parliament does not pass the ordinance, it will expire after a certain period. Amending laws through an ordinance is against the spirit of the constitution.
Even if investment-friendly laws are introduced, what the government thinks about removing other hurdles, is not clear. Political instability is a permanent problem and discouraging the works started by the previous government by the successive government is a permanent political culture in Nepal. In the past, some projects already handed over to foreign companies were cancelled by successive governments without any reason. Besides, the government’s priority will also be changed along with a change in the government. There is a lack of continuity in works started by one government by the successive government. Moreover, there is a lack of good homework. There is a need for developing an all-party consensus on certain issues including harnessing natural resources, water resources, hydropower, mines, infrastructural investment, monetary policy, and economic policy, among others. Heavy taxation, more than that, extortion from political parties, are the major hurdles for investors. To attract foreign investment, the government should ensure the investors that at least for ten years, the country’s policy will not be changed. The nation has already conducted two investment summits. They were unable to attract foreign investment as expected. This means the policies introduced by the government are not enough to attract foreign investment. Besides, corruption and commission have become serious diseases of the present “loktantra”. Without curbing such a practice, organizing such investment summits can be a waste of time and funds, the government should understand.
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