Govt turns tough on IBN inefficiency; Finance Minister Wagle calls performance ‘embarrassing’

KATHMANDU: Nepal’s Finance Minister Dr. Swarnim Wagle has sharply criticized the performance of the Investment Board Nepal, describing its progress as “embarrassing” after only two out of 55 approved foreign investment projects entered the construction phase over the past 20 months.

Speaking at the 13th meeting of the Board’s Monitoring and Facilitation Committee on Tuesday, Wagle signaled a tougher government stance, warning that the current pace of project execution is unacceptable for an institution mandated to fast-track large-scale investments.

“Out of 55 approved foreign investment projects, only two moving into construction is frankly embarrassing,” Wagle said. “After such a long period of inaction, a ruthless review is now necessary. If the bottleneck lies with individuals, they must be held accountable; if it is legal, then the laws must be amended.”

The Finance Minister also demanded a clear explanation for the Board’s underperformance. Sources present at the meeting said his unusually strong tone left Sushil Gyawali, CEO of the Board, visibly uneasy. Gyawali was appointed in late Bhadra 2081 BS (around September 2024 AD) during the tenure of former Prime Minister K. P. Sharma Oli.

Originally established to accelerate investment in major infrastructure and industrial projects through a “fast-track” mechanism, the Investment Board has, in recent years, developed a reputation similar to other slow-moving bureaucratic institutions.

Investor confidence has also been eroding. Stakeholders report that instead of facilitating projects, the Board has often delayed decisions by holding files under various pretexts, leading some investors to withdraw entirely.

A notable case involved a proposed agro-based project backed by businessman Min Bahadur Gurung of Bhatbhateni Supermarket. Through Renew Holdings Limited, Gurung had proposed an investment of NPR 63.55 billion (approximately USD 480 million) in a combined solar energy and commercial farming project. However, after the Board failed to make a decision for over a year, the project was ultimately abandoned.

Wagle warned that the government’s broader economic and investment targets cannot be achieved under the current performance level. He stated that he would take a “ruthless approach” if tangible results are not delivered by the next meeting.

The Finance Minister has directed CEO Gyawali to demonstrate immediate progress in at least 10 projects.

“If issues are not resolved and progress is not visible even by the 14th meeting, we will be forced to take tougher decisions,” Wagle said. “It is unacceptable for such a powerful investment facilitation body to appear so ineffective. We must see progress in at least 10 projects immediately.”

He also urged the Board’s leadership to explore more ambitious and high-impact “fancy” projects to boost investor confidence and economic momentum.

Echoing the criticism, Sudip Dhakal, Policy, Administration, and Governance Advisor to the Prime Minister, expressed strong dissatisfaction with the Board’s working style.

“The condition of projects that carry the country’s future looks extremely dismal,” Dhakal said. “All obstacles to progress must be identified and addressed immediately—whether they are institutional, individual, or systemic. This will now be closely monitored.”

During the meeting, CEO Gyawali presented updates on projects approved and facilitated by the Board, though concerns over implementation gaps dominated the discussion.