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🇳🇵 Nepal /Economy & Trade

Visiting US official seeks better climate for US investment in Nepal

From Kathmandu Post · (2d ago) English

Summarized and contextualized by DistantNews.

TLDR

  • A visiting US official urged Nepal to create a conducive environment for increased American investment.
  • Nepali ministers requested more direct US investment for job creation and economic progress, pledging to amend laws.
  • Discussions included tax issues for US companies like Cotiviti and strengthening Nepal-US trade and investment relations.

The Kathmandu Post, a leading English-language daily in Nepal, focuses on this visit by Assistant Secretary of State Samir Paul Kapur, highlighting Nepal's proactive stance in seeking direct foreign investment over aid.

The United States would encourage more direct investment in Nepal, provided that the country creates a conducive environment for the same.

— Samir Paul KapurUS Assistant Secretary of State Samir Paul Kapur stating the condition for increased US investment.

Our report emphasizes the Nepali ministers' clear message to the US delegation: Nepal is eager for direct investment to fuel job creation and economic advancement. Instead of requesting development assistance, Finance Minister Swarnim Wagle and Foreign Minister Shisir Khanal focused on attracting capital from American businesses. They assured the US official that Nepal is committed to amending its laws and streamlining regulations to foster an investment-friendly climate.

Nepal would settle these issues through legal procedures.

— Swarnim WagleFinance Minister Swarnim Wagle's response regarding tax issues of US companies.

The discussions also touched upon specific concerns, such as the tax issues faced by US companies like Cotiviti, Coca-Cola, and Dolma Impact Fund. Minister Wagle assured that these matters would be resolved through legal channels, signaling a commitment to transparency and due process. This focus on resolving existing issues while inviting new investment is crucial for building investor confidence.

The priority of the new government is to create an investment-friendly environment in Nepal.

— Nepali officialAn official privy to the meetings highlighting the government's focus.

From Nepal's perspective, this visit represents a significant opportunity. Our nation has struggled with economic growth, averaging below five percent annually for decades. The government's priority is clear: accelerate growth and transition to a middle-income economy within ten years. The assurance from the US side that they will encourage investments if Nepal creates the right environment is a welcome development. This engagement underscores Nepal's desire to forge stronger economic partnerships with the US, moving beyond traditional development aid to a more mutually beneficial investment relationship. This is a conversation that resonates deeply within Nepal, as the nation seeks sustainable pathways to prosperity.

If the climate is made investment-friendly, they will encourage investments in areas of Nepali priority.

— Nepali officialA Nepali official privy to the meetings relaying the US assurance.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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