The world has increasingly become interdependent due to fast-paced globalisation that has broken down the physical barriers and spurred the greater mobility of people, goods, capital and technology. Today it is difficult for any country to stay isolated as such posture deprives the benefits brought by the globalisation. However, the countries with strong financial system, skilled human resources and cutting-edge technology can only benefit from the economic globalisation.
Nepal, which is set to graduate to the status of developing nation, is unable to reap the fruits of economy-led globalised world in the absence of competitive export items, adequate foreign investment and sophisticated technology. Nepal is in dire need of investments that enable it to tap potentials in energy, tourism and agriculture, among others. Of course, Nepal annually receives a large amount of remittances sent by Nepalis working in various countries, particularly in the Middle East and Malaysia.
But, the earnings from remittances are not reliable as the international labour markets are prone to conflicts and pandemic. For a robust economic growth, Nepal must invest in public utilities, hydropower, infrastructure development, tourism, agriculture and industries. In order to attract investment, both domestic and foreign, the country has eased the legislative provisions.
Still the flow of foreign direct investment is not encouraging. Against this backdrop, Oman has expressed its desire to invest in touri.