FNCCI President Dhakal urges OPEC Fund for more Investment in Nepal

KATHMANDU: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has urged the OPEC Fund to increase investment in Nepal, stating that Nepal offers abundant investment potential. 

During a meeting with the President of the OPEC Fund Abdulhamid Alkhalifa and Vice President Tareq Alnassar in Vienna, Austria, on Tuesday, President Dhakal urged the OPEC Fund for International Development (the OPEC Fund) to expand its investments in the country.

"Nepal could become a new and significant investment destination for the OPEC Fund," he asserted. 

Nepal situating in between two rising economic powers - China and India - is capable of reaping benefits from their markets, the tourism industry, and the development of both countries due to its strategic location, he said as reported by the FNCCI. 

Stating that the investment-friendly environment in Nepal is becoming increasingly conducive, the FNCCI President highlighted significant investment opportunities in Nepal in tourism, energy, infrastructure, agriculture, and information technology sectors including others. 

Referring to the long-term power trade agreement between the Government of Nepal and the Government of India, Dhakal said. "It opens up opportunities for investment in hydropower and renewable energy by making Nepal's vast energy potential accessible to the market."

Similarly, he appraised the OPEC Fund high-level delegation that the power trade agreement with another neighboring country, Bangladesh, is in its final stages.

Dhakal utilized the moment to highlight Nepal's cultural heritage, natural beauty, and youthful and energetic workforce, suggesting that investments in the development of tourism, agriculture, and information technology infrastructure could yield significant benefits. 

Sharing about the recent amendments to some old laws that were considered obstacles to investment, Dhakal stated that the Nepal government, in cooperation with FNCCI, is committed to creating an investment-friendly environment in the country. 

He added a bilateral investment agreement (BIA) framework, prepared with the initiative of FNCCI, has been approved by the Council of Ministers. "This framework will help ensure the security of foreign investments and create a conducive investment environment."

The FNCCI President highlighted that FNCCI has been continuously working to attract investments and improve the investment climate in Nepal. Recently, FNCCI organized business summits in New Delhi, Beijing, and Dubai, he apprised the team. 

Promising that FNCCI is ready to facilitate any investor in Nepal, he said that Nepalese investors are willing to partner with foreign investments in any sector.

OPEC Fund President Abdul Hamid Alkhalifa, while discussing the investments made by the OPEC Fund in Nepal, expressed readiness to increase investments in Nepal's renewable energy, hydropower, and the promotion of small and medium-sized enterprises.

On the occasion, the OPEC Fund has signed a US$25 million loan agreement with Global IME Bank Limited to increase access to financing for micro, small, and medium enterprises (MSMEs), including women-owned enterprises, as well as climate-smart projects.