KATHMANDU, Aug 11: Finance Minister Dr Swarnim Wagle has urged multinational companies operating in Nepal to increase their investments in the country.
During a meeting with representatives of 20 major multinational taxpayers at the ministry on Monday, Wagle urged them to bring in new investment, expand existing operations and create more jobs.
“Invest more in Nepal and expand your existing industries,” Wagle said. “Enter new areas of production and technology. The government will stand by you.”
In response, company representatives said they were preparing to invest around Rs 200 billion in Nepal in the near future. They also pledged to increase investment further if the government ensures greater policy stability.
Senior company officials told the finance minister that they were already moving ahead with plans to expand investments in various sectors, including hydropower, paint manufacturing, hotels and beverages.
“We are investing Rs 200 billion in industries such as hydropower, food, hotels and paints,” representatives of the multinational companies said. “The government should create a favourable environment, and we are ready to expand our investments. This will contribute to both employment and economic growth.”
The representatives said the new government’s budget had significantly boosted the confidence of foreign investors. However, they urged the government to be more flexible on several policy and practical issues.
“Since the formation of the new government, we have seen improvements in the administrative work of the Department of Industry, Office of the Company Registrar, tax offices and customs offices,” they said. “However, further facilitation is needed in terms of some policy decisions and their practical implementation.”
According to the representatives, the government should facilitate companies operating in Nepal to bring capital from their parent companies. They also called for clear definitions of economic and criminal offences, amendments to Section 57 of the Income Tax Act, and reforms to labour laws to create a more investment friendly environment.
They also urged the government to maintain stable customs rates on imported raw materials, facilitate access to locally available raw materials, address price controls, relax land ceiling provisions and resolve differences in tax rates imposed by local governments.
The representatives also asked the finance minister to make basic public services more technology friendly to improve the industrial environment.
They called for measures to eliminate problems related to double taxation and simplify the process for repatriating investment returns.
Representatives from multinational companies and Nepali investors, including Surya Nepal, Ncell Axiata, Aarti Strips, Gorkha Brewery, Himalayan Airlines, Hongshi Shivam Cement, Doosan Infracore, Dabur Nepal, Bottlers Nepal, Unilever Nepal, Asian Paints, Power Construction, Gorkha Lahari, Huaxin Cement Narayani, New Hope Agro Business, Nepal Wellhope Agritech, Varun Beverages, Turkish Airlines, Bhotekoshi Power Company and Berger Paints, attended the meeting.
Finance Minister Wagle has been holding a series of consultations on budget implementation. Earlier, he met with representatives of around three dozen manufacturing industries.
He subsequently held discussions with chief executive officers of commercial banks and, during the same week, met 18 executive directors of Nepal Rastra Bank to discuss ways to promote economic growth.
People’s News Monitoring Service
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