Kathmandu, April 10, 2006

The total number of foreign direct investment (FDI) projects has increased to 1,062 as of March, 2006 amounting to over two billion rupees in capital investment on such projects. According to the department of industries (DoI), the number of FDI projects registered in 2005, alone had reached to 76 compared to 35 in the previous year. Ashok Kumar Dahal, director of DoI, talking to The Himalayan Times, disclosed that FDI projects registered during 2005 were worth Rs 2,146 million in capital investment. Similarly, in 2004, 35 FDIprojects worth Rs 546 million were registered, said Dahal. According to him, most FDI projects are in the service sector such as hotels, restaurants and IT sector. The major focus of service sector seems to be on IT as investors find the idea of making software programmes here and selling them in India and USA, lucrative. Informed people have commented that it is quite costly in India and USA to buy software programmes made in those countries, but made-in-Nepal products are found to be cheaper. Indian, South Koreans and American investors have invested in the IT sector here, informed Dahal. It shows that IT has become a lucrative FDI destination in recent years. After Nepal adopted economic liberalisation in 1992, FDI projects in Nepal increased substantially, said Dahal. However, only about 80 per cent registered FDIs are in operation right now, he informed. Most FDI projects are established in the Kathmandu valley which till now seems safer compared to other districts, said Dahal. It has also been found that even if investors register their companies here, some of them change their minds later on.

Suppression of protests condemned

Kathmandu, April 10, 2006

Around a dozen human rights activists and lawyers, in a joint press release, today flayed the government for acting autocratically and imposing curfew. The lawyers and rights activists accused Home Minister Kamal Thapa of attempting to suppress the peaceful movement on the pretext of controlling Maoist infiltration. “What the government is doing is inhumane and autocratic,” the statement issued by 12 human rights activists said. Meanwhile, another group of rights activists urged the government to provide adequate compensation to the families of those killed by security forces during agitation. They urged the government to start talks with political parties. They urged for election to the constituent assembly and the formation of an all-party government to resolve the crisis. Similarly, the Nepal University Teachers’ Association today condemned the government for curtailing citizens’ fundamental rights by imposing curfew and prohibitory orders in different parts of the country. Likewise, the Nepal Magar students Association today condemned the imposition of curfew, killings, suppression and arrests of protesters and demanded a probe into all such incidents.