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