Views Collection

Business and economy analysts have been foreseeing clear blue sky in the wake up of political scenario coming to a conclusion in a few days time. Nepal Share Market (NPESE) has been doing exceptionally well in the last couple of weeks. The NEPSE index was nearing two hundred marks but it has gained some momentum and is bullish at present. May 27th is the last day to bring new constitution and to a great relief all the political parties seem to work together on it. With this the NEPSE is on the bullish run for quite some weeks now.

The Investment Board of Nepal is forecasting a throng of foreign investors in Nepal. The legal procedure is troublesome and guarantee provided by the government to foreign investors is very little. Despite these obstacles foreign investment is ready to step in to Nepal’s economy. Nepal’s economy is by the way very promising with huge scope in hydropower, agriculture and real estate to name some. Nepal is still a developing country which is why there are plenty of rooms for development and investments.

Foreign investment is a welcome one in any parts of the world but without any local economic infrastructures, those investments may not turn out worthy in the long run. Local economic infrastructures in the sense can be referred to local capital, local manpower, local management and etc. Foreign investment can anytime pack their bags and leave if in anyway the local market worsens. Having said this there are some concerns regarding the security of foreign investment in Nepal as well. The government has nothing to offer to large foreign investors. However there had been BIPTA agreement with India a few months ago. When the agreement had been done, there was a huge protest going on against BIPTA. This may indicate that some facility to foreign investment may not be welcomed by all.

As already mentioned above Nepal is still a developing nation and it has a lot to do. And economically it has even more to do if it wants to establish itself as a prosperous nation. Having two powerful countries India and China on either side, Nepal has never been able to grab up the opportunity to leap with them. Time is nearly slipping out if Nepal wants to catch up with the world. Therefore legislations should be amended accordingly favouring both foreign investment and its economy as a whole.