'Remove screening process for FDI approval'

Global experts have urged the government to remove procedural hurdles in order to lure foreign direct investment to the country. They have also asked that foreign investment be allowed to flow without undergoing a screening process for approval.
Highlighting the prospects that the country has, experts have suggested that the government ensure a basic investment friendly environment.
"The government has to create an environment wherein investors can feel secure and be certain of good returns," Roberto Echandi, the global lead at the World Bank Group, said at a workshop in Kathmandu on Thursday.
On the government´s recent decision to increase the minimum threshold for foreign investment, Echandi said that investment inflow goes up only when the minimum investment requirements are less complicated. The government has increased the minimum threshold from US$ 26,000 to US$ 50,000 for foreign investment.
"The government should impose screening in strategically important sectors," Echandi said. Imposing screening for foreign investment in all sectors, he said, might turn off investors from coming into the country with new investment. "Nepal should also focus on luring foreign investment through regional integration and trade," Echandi said.
The workshop on ´making investment competitiveness for Nepal a reality´ also stressed on identifying areas that have competitive edges.
"Having an investment policy that promotes and protects foreign investment is important for any country to attract foreign investors," Echandi said, stressing the government´s role in taking these activities ahead. "Investment policy also should take care of developing harmonious relationships among stakeholders."
The workshop that was jointly organized by International Finance Corporation (IFC), a member of the World Bank Group, and Nepal Investment Board (NIB) also dwelled on ways to promote investment in the country.
"The government has to work on attracting all kinds of foreign investment," Echandi said, elaborating that there were mainly three kinds of foreign investment: market seeking, natural resources seeking and efficiency seeking.
Meanwhile, government officials briefed about activities taking place to take forward the reform process to lure investment.
"The government is working on revising laws and regulations to minimize the approval process," Radesh Pant, the chief executive officer of the NIB, said at the workshop.
Expressing optimism, FNCCI President Suraj Vaidya said the government should prioritize the projects that are strategically important for national development. "Our efforts should focus on those projects," he said.