Kathmandu, March 1:

Prasidha B Panday, the newly-elected president of Nepal-USA Chamber of Commerce and Industry, feels that the presence of many US majors in the booming markets of India and China, can be an opportunity for Nepal if it can lure some of these companies in.

“The US is placing immense importance on Indian and Chinese markets. There are already many American companies entrenched there. If we could build a network with these companies and convince them that Nepal too has good business opportunities, then attracting American investment would no longer be a dream,” Panday says. “Trade, tourism and finance are three major sectors, which do not have a threat from the WTO regime. We cannot compete in the global market in manufacturing but tourism offers a natural advantage to Nepal. It is the only sector that could help in balancing the trade deficit with the US,” he says.

“Although nuclear energy is being considered as one of the most important sources of energy the world over, Nepal is very rich in hydro power potential. If it can develop this sector, it can sell the surplus power to India. But if we do not take any initiative to develop hydropower plants now and invest in them in time, then this very important sector can also be lost,” Panday adds.

“Though Nepal is a very small market for America and it might not get priority for investment but a super economic power like the US would certainly want its presence felt in every nook and corner of the world,” he feels.

Panday also says that to buttress the diplomatic relation between the two countries, economic activities can play a major role. If business activities between the two countries boom, then certainly it would aid in fine-tuning diplomatic relations between the countries, he says. The new management of Nepal-USA Chamber of Commerce and Industry would focus primarily on reinforcing the already existing businesses like garment and carpet. Panday adds, “We would work hard and vigorously lobby for duty-free access for garment and carpet exports to US from Nepal.”

“Business once lost would take years to be rebuild. The garment and carpet business is turning out to be a fiasco, which the new management would take up seriously,” he says.

Talking about Nepal-US trade relations, Panday assures that the Nepal-USA Chamber of Commerce and Industry would work for the avoidance of double taxation between US and Nepal. He also underlines the need for developing a country-focused investment strategy in areas where Nepal enjoys comparative advantages.

In non-traditional items, information technology offers comparative benefits. Having been induced by the Indian market, this sector too could also play a pivotal role is supporting the deteriorating economy of Nepal, he says.

Nepal is one of the leading countries in terms of supplying manpower and the sector could do a lot more to support the national economy at these hard times. But this, feels Panday, would require a new and sustainable direction. He assures that the new management under his leadership would work to promote tourism in US by presenting facts and figures to counter the negative publicity often carried by the media.

American industries have a lot of opportunities to work in Nepal in sectors like aviation, medicine, communications and technical know-how. The Nepal-USA Chamber of Commerce and Industry would take the necessary steps to capitalise on these potentials, given the government formulates necessary labour and investment laws.

In this direction, the Nepal-USA Chamber of Commerce and Industry is working to finalise the draft format for the ‘investment promotion and protection act’, informs Panday.