Post on 29-May-2020
Confederation of Nepalese Industries (CNI)
Hari Bhakta Sharma, Sr.VP
Investment Gap vs Opportunities in Nepal
Quest for Graduation to Developing Country
Nepal on Statistics
GDP 2013-14: USD 20.29 Billion/ 730 per Capita Agriculture : 37%
Industry 6.1%
Services : 56.9% (From Remittance 24.9%)
GDP 2022-23: USD 54.40 Billion/ 1,600 per Capita (Population Expected to be 34 Million)
Agriculture : 34%
Industry 16.0%
Services : 50.0%
GDP Growth Needed 2014-2022 (for Graduation):
Annual Growth : 8.50 % or More
Can Nepal Graduate & Attract Investment ?
Expanding for Rapid Growth
Increasing Income/ Improved Education
Robust Remittance
Virgin Market
Expanding Economy
Higher Profitability
Opportunities : Infrastructure
Airports
Int’l Airport at Pokhara
Int’l Airport at Nijgadha
Highways
Bagmati Corridor Proj. Connecting Kathmandu
Express Ways connecting
various Cities
Railways
East West Electric
Railways
Pokhara Kathmandu
Railways
The Funding Gap in Infra
A WB report recently concluded that Nepal needs to spend USD 13-18 billion from 2013-2020 to bridge the investment gap in infrastructure
Out of which, USD 3.7 - 5.5 Billion is required in transport infrastructure alone
0
50
100
150
200
250
300
350
400
NPR B
illio
n
Infrastructure Investment Deficit
Investment inInfrastructure(Past Trend &Future Projection)
RequiredInvestment inInfrastructure
Infrastructure Investment Gap
Private Sector Investment? USD – 100 Billion Required for 10 Yrs
Private investment in Nepal’s physical infrastructure as a % of GDP is lowest in the South Asian region
Source: Reducing Poverty by Closing South Asia’s Infrastructure Gap, The World Bank, December 2013
1.14
2.57
0.66
1.59
1.04
0
0.5
1
1.5
2
2.5
3
Bangladesh India Nepal Pakistan Sri Lanka
Private Sector Investments in Infrastructure (as percentage of GDP 2007-12)
Opportunities : Manufacturing
Agricultural Products
Food Processing
High Quality
Orthodox Tea
Natural Products
Medicinal Herbs
Herbal Cosmetics
Industrial Goods
Home Appliances
Pharma/
Biotech
Opportunities : Tourism (Unmatched in Global Scale)
Trekking/
Mountaineering
Mt. Everest and other 7 peaks more
than 8000 Mtr
Best Trekking Routes in the World
Scenic Wildlife
A Paradise for Bird
Watchers
Wildlife Sanctuaries
Pilgrimage
Lumbini : The Birth Place of Bouddha
Pashupatinath:
Most revered temple of
Lord Shiva
Opportunities : Hydropower
Projects
Run of the River
Storage Types
Capacities
44,000 MW economically
feasible
At present only 740 MW (170 MW
from Private Producers) is
being generated
Success Stories
36 MW Bhote Khoshi Project
Statkraft, Norway
60 MW Khimti Project
Current Power Position Investment Opportunity or Problem ?
Opportunities : Tourism
Hotels Star Hotels to
Budget Hotels
(Room Scarcity)
Resorts and Spas
Casinos/
Fun Parks
First Country in South Asia operating
Casinos for 40 Years
Fun Parks for Domestic and Int’l Tourists
Adventure Tourism
One of the Best
Paragliding Destinations
Bunge Jumping
Nepal’s Competitiveness Ranking Ranking out of 189 Countries
Ranked Attribute 2013 2014 Percentile
Doing Business 103 105 44%
Starting a Business 103 97 49%
Dealing with Construction Permits 97 105 44%
Getting Electricity 99 98 48%
Registering Property 22 24 87%
Getting Credit 52 55 71%
Protecting Investors 80 80 58%
Paying Taxes 121 126 33%
Trading Across Borders 173 177 6%
Enforcing Contracts 137 139 26%
Resolving Insolvency 123 125 34%
CNI – is the apex representative body
of the Industrial Community of
Nepal
CNI extends its services to all
Foreign Investors who would like to
explore opportunities in
Nepal
CNI would be happy to assist
you in any manner needed
for the promotion of Business
between Nepal and other Countries.
Confederation of Nepalese Industries (CNI)
Nepal with unique resources & location offers
an attractive Investment Destination
For any specific areas, we request the distinguished
delegates to connect with CNI or Relevant Govt
Bodies
In fact, this presentation is
intended to give a flavor of what’s possible in Nepal, and hopefully to
whet the appetite of the audience.
Confederation of Nepalese Industries (CNI)
Hari Bhakta Sharma/Sr. VP
Thank You for Your Patience
Confederation of Nepalese Industries 5th Level Trade Tower, Thapathali Kathmandu, Nepal
www.cnind.org, www.investnepal.gov.np