Officials from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) have urged the newly appointed Nepali ambassadors to lead economic diplomacy efforts.

During an interaction programme organised by the FNCCI on Wednesday, November 13, Chandra Prasad Dhakal, its President, said that the country’s top private sector body was committed to supporting Nepal’s diplomatic missions abroad in areas of investment, tourism, and export promotion.

Newly appointed Nepali ambassadors to 17 countries and three consul generals were invited for the event. 

According to Dhakal, the federation has been working on establishing a Foreign Investment Assistance Desk to act as a bridge between investors and the government for investment promotion.
“We urge you to fully utilise our mechanisms to advance economic diplomacy,” said Dhakal. “The distinguished ambassadors must take a leading role.”
FNCCI officials emphasised that diplomatic missions could leverage the FNCCI’s international network.

Dhakal took the occasion to argue that policy measures taken to curb demand have had adverse effects on the country’s economy. 

“It was necessary to manage and advance significant economic growth after Covid-19,” said Dhakal. “However, we adopted restrictive economic policies, leading to a large-scale outflow of manpower, and a decline in investment and employment.”

Foreign investment over the past two years has been limited to Rs 7 to 9 billion annually, representing only about 0.2 percent of the country’s gross domestic product, Dhakal added.

Despite these setbacks, Dhakal remained optimistic about Nepal's economic potential. “Foreign investors can take advantage of the country’s high foreign currency reserves.”

Jointly organising investment promotion programs was seen as one of the ways in the coming days to foster collaboration between the Nepali missions abroad and the federation. 

“In the past one-and-a-half-year, we have hosted significant conferences in India, China, and Dubai,” Dhakal said, with around 150 local entrepreneurs participating from each country.

The need to address non-tariff barriers hindering Nepali exports, especially in the Middle East, were also underscored during the event. 

FNCCI also cautioned the ambassadors that Nepal's impending transition from least developed country status could limit some international benefits, urging the ambassadors to mitigate its impact on the private sector.

The newly appointed ambassadors said they were committed to enhancing economic diplomacy.

Chandra Ghimire, proposed ambassador to the UK, called for a bilateral tax exemption agreement, while Krishna Prasad Oli, proposed ambassador to China, noted the export potential of Nepal’s Himalayan water resources. 

Shankar Sharma, the proposed ambassador to India, emphasised the need to participate in events held in India and requested a written summary of existing issues with India.

The proposed ambassador to Qatar noted the establishment of a joint council between the Qatar Chamber and the FNCCI, suggesting efforts to collaborate for mutual benefits.

Sahayog Rupakheti, Nepal’s ambassador to Germany, urged the federation to take the lead in securing GSP Plus facilities for countries entering the European market and called for discussions on the ratification of ILO Convention 87.

Senior officials from the Ministry of Foreign Affairs, including Joint Secretaries Laxman Khanal and Gyan Bahadur Magar, assured that the ministry would continue to prioritise expanding economic diplomacy and pledged enhanced support for the private sector.