KATHMANDU, SEPTEMBER 8

Stating that the private sector is an important partner for economic prosperity, Former prime minister and CPN Maoist Centre Chairman Pushpa Kamal Dahal 'Prachanda' has pledged to create a favourable environment for the private sector.

Addressing the opening session of the fourth edition of the Nepal Infrastructure Summit 2022 organised by the Ministry of Physical Infrastructure and Transport and the Confederation of Nepalese Industries (CNI) here today, he said that state's responsibility to create an investment-friendly environment has remained unfulfilled and that that it is necessary for the state to put more faith on the private sector and increase foreign investment.

He suggested that infrastructure development should not be seen only as physical development but also be focused on digital development.

Vishnu Kumar Agarwal, president of CNI, said that the confederation has been promoting the concept of public-private partnership in infrastructure development via the summit, which prompted establishment of Nepal Infrastructure Bank in the country.

He said that economic prosperity can be achieved by exploiting the potential in the digital sector and international connectivity for tourism promotion.

Vice-President of Private Sector Operations and Public-Private Partnership at Asian Development Bank (ADB) Ashok Lavasa said that the summit is important for infrastructure development and economic growth.

Highlighting that Nepal can benefit a lot from the opportunities created in the infrastructure sector, he said that ADB has also prioritised Nepal's infrastructure development.

Satish Kumar More, immediate past president of CNI, said that the government should formulate appropriate policies for infrastructure development.

Meanwhile, the summit saw in-depth discussions among national and international infrastructure experts, investors, representatives of all three levels of government, and representatives of the private sector on issues such as investment promotion for infrastructure, obstacles to the development of infrastructure sector, among others.

The speakers said that economic prosperity of Nepal is possible through infrastructure development and stressed adequate investment in the sector.

In the first panel discussion titled 'Infrastructure for Growth - The Big Picture Post-COVID Scenario', experts underscored change in priority and demand for investment due to the pandemic.

Economist Swarnim Wagle, who was one of speakers, said that the country's first priority was to make the economy dynamic with extensive study and research, target-setting, weighing risks and benefits before focusing on infrastructure development. He emphasised that Nepal should take steps in building future-oriented infrastructure rather than focusing on short-term policy.

'Although many countries benefited from every industrial revolution, Nepal has not been able to do the same,' he said. 'The current fourth industrial revolution is the rise of AI, information technology, machine learning. Thus, it is now necessary to pay attention to digital infrastructure.'

Likewise, Lavasa, said that the participation of the private sector in infrastructure construction is increasing in the Asian region while Nirvan Chaudhary, vice-president of CNI, said that rather than the lack of resources for investment in infrastructure and the reluctance of the private sector, the obstruction is due to government policies and regulations.

In the second business session titled 'Regional Connectivity for Economical Growth', Minister for Culture, Tourism and Civil Aviation Jeevan Ram Shrestha said that it's hard to accelerate development without regional connectivity.

He emphasised the necessity of regional connectivity for the development of tourism, energy and agriculture sectors.

'There is a need for air, water, land and rail networks. It is necessary to advance regional connectivity, which can lead to strengthening of the overall economy through cooperation among the countries. Moreover, internal connectivity is equally necessary.'

In the final business session titled 'Digital Infrastructure and Technology Integration: Leapfrogging Opportunities', Ambassador of Republic of Azerbaijan Ashraf Shikhaliyev said that Nepal also can develop through digitalisation and digital governance as Azerbaijan did.

Shikhaliyev further informed the summit that digitalisation and digital governance has eased the livelihood of the public as well as changed the overall economy, and due to digitalisation Azerbaijan has become one of the most attractive destinations for all, where visa can be obtained within an hour of online application. Driving licence can also be replaced within five minutes and firm registration is completed within two days and these all processes are done very transparently, he added.

A version of this article appears in the print on September 9, 2022 of The Himalayan Times.