MoCS clueless about crucial meeting

Though Nepal and Bangladesh finalized a draft last year, aiming to bring into operation a transit route between the two countries, the final pact is still eluding. A commerce secretary level meeting held last year in Dhaka had finalized the draft of the proposed agreement.
The agreement envisions to boost exports from Nepal through improved connectivity with Bangladesh. Lentils constitute about 75 percent of Nepal´s exports to Bangladesh.
"Though Bangladesh is ready to ink the pact any time, our progress is slow," said Purshottam Ojha, who was a couple of weeks ago transferred to the Prime Minister´s Office from the Ministry of Commerce and Supplies (MoCS). Last year´s meeting had decided to hold next bilateral meeting in Kathmandu between February and March this year.
Lal Mani Joshi, Secretary at MoCS, however, expressed ignorance of any preparations for the meeting supposed to take place in Kathmandu. "I have heard about the meeting but have no idea about the preparations by our ministry," said Joshi.
The draft of the agreement on bilateral transit stipulates to Nepal can use Mongla and Chittagong ports for its international trade. Nepali traders are facing problems in the transit of goods through Fulbari-Banglabanda route due to complicated transit process. Nepali exporters have to bear up with poor road infrastructure along Kakarvitta-Fulbari to Banglabanada and hassles caused by Indian security personnel. 

The proposed pact is crucial to expand Nepal´s export with Bangladesh, which is almost double the imports from there. According to statistics compiled by Central Bank of Bangladesh, Nepal exported goods worth US$ 7.5 million during the three months between July and September last year. However, imports from Bangladesh stood at US$ 3.6 million during the period.
According to Kumud Dugar, a trader who has been exporting goods to Bangladesh, Nepal enjoys comparative advantage on lentils export that hovers around 25 tons annually -- some 70-75 percent of Nepal´s total export to Bangladesh.
Besides the Nepal-Bangladesh transit pact, Nepal-India Railway Service Agreement (RSA), Free Trade Agreement with Bhutan and Bangladesh, facility to use Visakhapatnam port, and Rohalpur-Singhabad transit are also among the long overdue issues.
However, Joshi claimed that the ministry is working to settle the issues gradually with due preparation.

Over a dozen int'l firms knock IB door for investment

More than a dozen companies from China and India have approached the Investment Board (IB), showing interest to invest in different sectors ranging from hydropower to mining in Nepal.

Some half a dozen Indian companies have expressed strong interest to invest in airport, hydropower and transmission line, disclosed Radesh Pant, CEO of the IB.

Chinese firms approaching the board too have expressed willingness to put their money on long-term projects like hydropower, mining and infrastructure development.

“The companies are in regular discussion with us,” Pant told Republica.

He, however, refused to disclose the name of the companies, saying it would be inappropriate to name them until a final decision is made.

IB, which has been coordinating with the foreign investors in order to lure overseas investment for the upcoming Investment Year 2012/13, has also finalized its structure in order to facilitate overseas investors and deal with their issues.

Pant said the board will have five sub-divisions -- project assessment, investment generation, investor services, policy services and governance.

“Fundamentally, these units have been worked out in order to make IB a long-term professional arm of the government,” said Pant, who has been leading the government´s ambitious plan of attracting foreign investment amounting to $1 billion during the second half of 2011/12.

Pant is confident of achieving the ambitious target provided that there is conducive business environment in the country.

“Once we prepare all the legal frameworks to protect investment, I am sure we will start receiving foreign direct investment (FDI),” he said, further disclosing that investors from other countries like France, US and Japan too have shown interest to invest in Nepal.

Revision of FDI Policy

The government has taken initiatives to revise Foreign Direct Investment and One-Window Policy (FDI) policy 1992 to create a sound legal framework during the Investment Year 2012/13.

Ministry of Industry (MoI) in assistance with the United States Agency for International Development (USAID) has hired a team of experts to review the existing policy.

“We have taken service of a team of experts to get meaningful review of the existing policy,” Anil Kumar Thakur, joint-secretary of MoI, said, adding: “After getting the report, we will make necessary changes in the policy.”