Finance Minister Dr.Mahat and IFC Vice President Discussion about Investment In Nepal

Kathmandu: Regional Vice President of International Finance Corporation (IFC) Ricardo Puliti met with Finance Minister Dr. Prakasharan Mahat. In that meeting, there was an in-depth discussion about increasing private investment and external capital mobilization for the economic development of Nepal.

In that meeting, it was discussed that IFC will provide technical support to develop a pipeline of potential projects for promoting private sector investment and diversifying financing instruments (especially equity exposure) to develop projects through public private partnerships.

Finance Minister Dr. Mahat said that through the latest financial tools, Nepal needs to deploy new financial tools to attract private capital in addition to traditional sectors to diversify investments in sectors such as IT, agri-business, tourism and other startups.

Especially due to the foreign exchange risk, IFC should use the concessional window (private sector window) as blending finance to encourage private investment while minimizing the current cost of loans flowing through IFC, as well as effectively mobilize equity and local currency based investment.

In order to create an attractive investment environment for external investment and capital mobilization, the Government of Nepal is going to submit the Safe Transactions Act to the Parliament and promised to address the interest of IFC in the law making related to credit information management. He also informed about the initiatives taken by Nepal to mobilize more capital through bonds based on local currency.

The Minister of Finance expressed his belief that Nepal’s private investment priorities and sectoral diversification will be included in the upcoming country partnership framework.

IFC Vice President Puliti praised Nepal’s initiative to create an investment promotion environment. Nepal Central Bank Governor, Maha Prasad Adhikari stated that there is a clear legal basis for mobilizing external capital and investment through the banking and financial sector and promised that Nepal Central Bank will facilitate the process.

On this occasion, Finance Minister Mahat held talks with IMF and World Bank South East Asia Regional Executive Director Vimvi Sayuga and Yati Kurniati on bilateral interests.