Prime Minister KP Sharma addressing the 'Nepal-China Business Summit' organized in Beijing. Photo: PM secretariat.

Prime Minister KP Sharma Oli has urged Chinese investors to increase investment in Nepal.

Addressing the 'Nepal-China Business Summit' organized in Beijing today, he called for more investment citing that the investment atmosphere in Nepal is improving and that there is potential to invest in many sectors.

The summit was hosted jointly by the Federation of Nepalese Chambers of Commerce and Industry, China Council for the Promotion of International Trade (CCPIT) and the Nepali Embassy in China.

Stating that continuous reforms are being made to attract foreign investment into Nepal, he said Nepal is ready to further expand investment opportunities and facilitate trade with favourable policy reforms.

As the chief guest of the program, Prime Minister Oli said that Nepal and China enjoy traditional relations, he said that economic development was possible due to mutual cordial relations. "The government has given priority to the private sector collaboration and is creating business environment accordingly," he said, "The private sector is the backbone of the economy and the government is always ready to protect domestic and foreign investment."

Prime Minister Oli said that although China is one of the largest investors and second largest country in terms of trade in Nepal, the trade deficit between the two countries is a matter of concern. He said that efforts should be made to facilitate trade since there is a market for Nepal's agricultural products in China.

Addressing the summit, Chinese Vice Minister of Commerce Ling Ji said that the relationship between China and Nepal is very old and trade and economic activities are also increasing. He also expressed his commitment to help increase Chinese investment in Nepal.

Stating that China is Nepal's second largest trading partner, Vice Minister Ling mentioned that transit will be facilitated to increase trade with other countries through China. He said that Nepal will benefit from the duty-free facility provided by China to products from least developed countries starting this December.

Also speaking on the occasion, President of FNCCI Chandra Prasad Dhakal shared about the latest initiatives taken by the Government of Nepal to create a business friendly environment in the country. He said that the government has amended eight different laws related to investment facilitation and a draft of a bilateral investment agreement has also been prepared.

Dhakal said that there is ample potential for investment in Nepal including in hydropower, tourism, manufacturing sector and information technology.