Nepal should attract Chinese investment to achieve growth

The Asian Development Bank (ADB) has suggested that Nepal should grab the opportunities from China to achieve the targeted economic growth rate for the next two years.

Launching Asian Development Outlook 2016 here on Wednesday, the ADB said Asia's leading economy China's structural change in imports can create immense opportunities for the border-sharing Nepal, Xinhua reported.

"China's structural change is a golden chance for Nepal. Thus, it's perfect time to attract direct foreign investment from the northern neighbour to strengthen economy," Kenichi Yokoyama, ADB country director for Nepal, said while addressing the programme.

ADB has projected a 1.5 percent economic growth rate of the quake ravaged Nepal for the fiscal year 2016 after a three percent growth last year.

It projected a slow growth pace for this year in regard to slow post-earthquake reconstruction, trade and transit disruption followed by months-long economic blockade and unfavourable monsoon creating troubles in agriculture sector.

However, the growth rate is expected to pick up to 4.8 percent in 2017 through stabilisation of political climate, acceleration of reconstruction and normal monsoon favouring agricultural growth.

ADB is of view that there is an urgent need to accelerate reconstruction and implementation of development programmes to prevent a further slowdown in economic growth.

The economic growth of Himalayan country is possible only through the speedy reconstruction drive and focusing on sectors of energy, tourism and agriculture, the bank said.

Nepal witnessed an inflation rate of 7.2 percent in 2015 whereas it was significantly higher in January this year, standing at 12.1 percent.