October 20: Ambassador of United States to Nepal Alaina B Teplitz has urged to ease the approval processes of foreign investments in Nepal. In a meeting with journalists at her residence on October 20, the US envoy stressed on formulating laws and regulations beneficial to investors, consumers as well as the government.

Stating the recent parliamentary endorsements of economic Bills as a welcoming move, Ambassador Teplitz said suggested to complete the process of formulation and amendment of Bills as soon as possible. “The Government of Nepal has taken an ambitious aim of uplifting the country’s status into developing nation by 2022. A sustainable economic growth is a must to achieve the goal,” she said, adding, “Timely introduction of new laws and amendment of new ones will eventually create an environment of trust.” According to Teplitz, conscious investors will remain in ‘wait and watch’ situation till a predictable investment environment is created. 

“The US Government has welcomed the recent parliamentary endorsement of Industrial Enterprises Act and Special Economic Zone Act. The Foreign Investment and Technology Transfer Act which is going through the parliamentary process is our main interest,” she said. Teplitz mentioned that the US government is eagerly waiting to see the approval of the Bill by the legislative body soon. She, however, noted that the proposed Bill needs extensive improvements.  “There should be an ‘automatic window’ instead of ‘one-stop service centre’ proposed in the FITTA Bill. The proposed provisions of ‘one-stop service center and Industrial and Investment promotion board will make it more difficult for foreign investors rather than facilitating them,” she said. She suggested forming a mechanism of automatic window for approval of foreign investment as issues regarding the management of companies and their employees are dynamic and multidimensional in the modern economy.  “India became the top FDI destination by adopting and implementing the ‘automatic window’ concept in 2015," she said. 

She also suggested removal of the cap on FDI in the draft of the proposed FITTA Bill. Stating that policy level obscurity and work level opacity turn the bureaucracy autocratic thereby fostering corruption in the country, Ambassador Teplitz stressed on making economic laws clear, pragmatic and simple as possible.