I am writing this in response to the cover story titled ‘Outbound FDI: Can Nepali Businesses Go Global’ (July 2014). It seems the government has lately become positive towards allowing Nepali businessmen to invest in foreign countries. Finance Minister Dr Ram Sharan Mahat announced through the budget speech to make necessary amendments to the two major laws -- Foreign Exchange Regulation Act and Foreign Investment Restriction Act.  It should be of concern that capital outflows may lead to reduction in domestic output as investors are inclined to invest in strong economies. 

Conservative economists and politicians are always hesitant to open up ways to allow outflow of capital from the country. Their rhetorical argument is that provision of outward FDI will bleed the country’s economy. They seem weak in logic and rationale as they do not give comprehensive answers to how and why Nepal should continue restriction on outbound FDI. 

 

But how long can a country restrict mobility of money based on such obsolete arguments? Thus, it is high time to realize that outward FDI does not always be a bane for developing countries like Nepal. Yes, the government needs to handle the issue carefully and try to bring effective laws to ensure benefit from the provision of outward FDI. 

 

In this context, the cover story of NBA was very relevant to analyze Nepal’s present scenario related to outward FDI and suggest the way forward. The story will certainly be helpful to policymakers while formulating laws and regulations related to the issue.

- Ayushma Aryal, Hadigaun, Kathmandu

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Negligence

 

I am writing this after I read the July 2014 issue of New Business Age. I am not a regular reader but now and then, I buy and read your magazine.

 

In an article under Bilateral Relations column titled, ‘Nepal and Mexico: Time to Explore Opportunities’, Fiji has been mentioned two times in the article. This shows the lack of seriousness. I think such mistakes should not be repeated in the future by a serious magazine like yours. 

- Ajay Uprety, Via Email

 

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Domestic Universities should be encouraged

 

I am a regular reader of New Business Age and I like the magazine very much. In the July 2014 issue, I loved the story on ‘International Degrees in Nepal Business Education’ under the business education column. I would completely agree with the writer that the trend of getting affiliated to foreign university is growing in Nepal. It is beneficial to the Nepali students as they can earn foreign degree whilst in Nepal. But at the same time, this also reflects the failure of Nepali Universities to deliver the same level of education. Though I strongly believe that domestic universities should be encouraged and developed, the trend of such affiliation with foreign universities has helped the country in averting brain drain.

- Manjil Sharma, Jawalakhel

 

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Cable TV for All

The article “DishHome: Digitising TV in Nepal” in July 2014 issue of New Business Age was very interesting to read. It is good to know that being the only direct to home (DTH) cable television of Nepal, DishHome has been able to reach remote areas of the country as well. It has been really doing well and helping people to provide information as well as entertainment. It was good to know that the company offers its service through 2200 outlets spread over the country and has further expansion plans. I hope that it will continue to be competitive in terms of price 

 

and quality in the future also. As a user I would to suggest them to solve the problem of poor transmission of channels. 

- Neharika Dahal, Biratnagar

 

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The Glory of Advertising

New Business Age July 2014 issue’s article titled “The Glory of Advertising” was an interesting read. I agree with the writer that the advertising sector indeed is moving towards betterment and has big potentials to grow further in future. The future of advertisement seems promising as Nepal is growing as a free competitive economy. 

 

However, I believe that the Nepali advertising sector lacks creativity. We don’t usually get to see creative Nepali advertisements in television or in other media too. With that, lack of maturity in advertising concepts among entrepreneurs is also one of the big problems of the Nepali advertising sector. Crity Awards, an annual programme by Advertisement Association of Nepal (AAN) can be a good step to boost the sector and encourage originality and creativity.

- Mahesh Thapa, Battisputali

 

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