FNCCI President Highlights Investment Opportunities in Nepal at Nepal-China Business Summit

Addressing the Nepal-China Business Summit during Prime Minister KP Sharma Oli’s official visit to China, Mr. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), underscored Nepal’s commitment to fostering a business-friendly environment and strengthening bilateral economic ties.

Speaking to an audience that included dignitaries, business leaders, and government officials from both nations, Mr. Dhakal expressed gratitude to the governments of Nepal and China and their respective embassies for supporting the event. Organized in partnership with the China Council for the Promotion of International Trade (CCPIT), the summit marked the continuation of a long-standing collaboration between the FNCCI and CCPIT since 2002.

Mr. Dhakal outlined significant reforms undertaken by Nepal to attract foreign investment, including the amendment of eight investment-related laws and the approval of a Bilateral Investment Agreement (BIA) framework. These measures, he noted, have enhanced investor confidence and clarified regulatory frameworks.

Highlighting Nepal’s economic potential, Mr. Dhakal stated that Nepal’s foreign exchange reserves have risen by 9.4% to $16.60 billion, sufficient to cover 14 months of imports. Additionally, Nepal’s first-ever country credit rating of BB- with a stable outlook reflects a promising investment climate compared to other South Asian nations.

Emphasizing Nepal’s strategic advantages, he pointed out its duty-free market access to India, China, the EU, the US, and other countries, alongside its demographic dividend, abundant natural resources, and burgeoning energy sector. He invited Chinese investors to explore opportunities in sectors such as hydropower, tourism, infrastructure, agro-processing, and ICT.

Acknowledging China’s role as Nepal’s second-largest trading partner, Mr. Dhakal welcomed the Chinese government’s decision to grant zero-tariff treatment to 100% of tariff items from least-developed countries, including Nepal. He expressed hope for increased Nepali exports to China, which currently account for just 1% of Nepal’s total exports.

On tourism, Mr. Dhakal highlighted Nepal’s rich cultural heritage and natural beauty, urging Chinese tourists to visit and invest in hospitality infrastructure. He lauded China’s decision to declare 2025 as “Visit Nepal Year in China”, further strengthening tourism ties.

Calling for enhanced connectivity, he emphasized the need for operational flights between Chinese cities and Nepal’s newly built international airports in Pokhara and Bhairahawa. He also urged both governments to expedite infrastructure development under the Trade and Transit Agreement.

Concluding his remarks, Mr. Dhakal reaffirmed FNCCI’s commitment to fostering mutually beneficial business relations and invited Chinese businesses to explore joint ventures in Nepal. He expressed optimism about the agreements signed during Prime Minister Oli’s visit, which are expected to further deepen economic cooperation between the two nations.

The summit serves as a testament to Nepal and China’s shared commitment to advancing their economic partnership, fostering investment, and promoting sustainable development in the region.