Prime Minister Pushpa Kamal Dahal’s remarks at the Nepal-EU Business Forum on Wednesday underscore the important truth that innovation and entrepreneurship are not just buzzwords, but are the foundation of Nepal’s economy’s future. In a world where innovation and entrepreneurship are the main drivers of growth, it is heartening to see the Government of Nepal supporting policies that promote a culture of creativity and enterprise. Prime Minister Dahal’s commitment to simplifying the investment process and fostering innovation could not come at a more opportune time. As Nepal plans to graduate from Least Developed Country (LDC) status by 2026 and achieve the Sustainable Development Goals (SDGs) by 2030, the need for strong economic growth is at an all-time high. It’s as urgent as ever. Central to this effort is the creation of employment opportunities and the retention of talented young people in the country.
Attracting foreign investment is an important step in realizing Nepal’s economic potential. His enthusiastic participation of over 50 countries in the recent Nepal Investment Summit sends a clear signal that the international community sees Nepal as a promising investment destination. The Prime Minister’s guarantee of openness for business further solidifies this recognition and lays the foundation for fruitful cooperation with EU Member States and the rest of the world. The introduction of the ‘automatic route’ for foreign direct investment up to Rs 500 crore is a laudable step that will streamline the investment process and demonstrate the government’s commitment to promoting economic growth. By removing bureaucratic hurdles and providing clarity and transparency, this initiative paves the way for increased inflows of foreign capital, which is essential to financing infrastructure development and fostering entrepreneurship.
But attracting investment is only part of the equation. Equally important is the transfer of technology and managerial expertise that comes with foreign partnerships. By leveraging international cooperation, Nepal can access cutting-edge technologies and best practices, increasing its competitiveness on the world stage. Additionally, the influx of management talent has the potential to foster local entrepreneurship and develop a new generation of homegrown innovators and business leaders. The benefits of government support for innovation and entrepreneurship go far beyond economic growth. By creating job opportunities, especially for young people, Nepal can stem the tide of brain drain and foster a sense of optimism and pride among its people. Moreover, a vibrant entrepreneurial ecosystem can foster social innovation and address pressing challenges such as poverty alleviation, health care, and education. Therefore, the government must support innovation and entrepreneurship to build a prosperous and economically resilient Nepal.
