Finance Minister Mahat Encourages Korean Investment in Nepal

In a significant development at the World Bank’s annual meeting in Marrakesh, Morocco, Nepal’s Finance Minister, Dr. Prakash Sharan Mahat, has encouraged Korean companies to invest in Nepal, highlighting the profitability experienced by foreign companies already investing in the country.

During a meeting with Deputy Prime Minister and Finance Minister of Korea, Choo Kyung-ho, Finance Minister Mahat emphasized the favorable investment climate in Nepal. He pointed out the successes of multinational companies such as Dabur, Coca-Cola, Pepsi, and ITC India in Nepal, as well as the profitability of the Malaysian telecom company.

Minister Mahat assured his Korean counterpart that the Nepalese government is actively working to facilitate private sector investments. He welcomed Korean investors and outlined promising sectors like hydropower production, construction of transmission and distribution lines, digital, agriculture, and tourism for potential investments.

Furthermore, Minister Mahat informed the Korean Deputy Prime Minister about India’s decision to purchase 10,000 megawatts of electricity from Nepal, indicating a strengthening regional partnership.

In response, the Korean Deputy Prime Minister expressed Korea’s readiness to assist Nepal in infrastructure development. He highlighted issues related to dual taxation in some Korean investments, urging Minister Mahat to address these concerns.

Finance Minister Mahat assured that the double taxation problem would be resolved, demonstrating his commitment to protecting Korean investments in Nepal. He also invited his Korean counterpart to visit Nepal, a gesture warmly received, with the Korean Minister expressing eagerness to visit and requesting an early agenda for the trip.

Minister Mahat commended the Korean government for providing employment opportunities to 12,000 Nepalis in South Korea. He also appealed to the Korean Minister to initiate permissions for Nepal Airlines to operate direct flights to Korea, emphasizing the potential for enhanced bilateral connectivity.

This proactive engagement between Nepal and Korea signals a positive step towards fostering economic cooperation and investment opportunities between the two nations.