South Asia Watch on Trade, Economics & Environment (SAWTEE)

Nepal's Commitments on Financial Services in the WTO: Status of Preparation and Underlying Issues

South Asia Watch on Trade, Economics & Environment (SAWTEE) and Nepal Rastra Bank (NRB) organized a workshop titled "Nepal's Commitments on Financial Services in the WTO: Status of Preparation and Underlying Issues" on 10 March 2008 in Kathmandu, Nepal. The workshop attended by about 50 participants from the public and private sectors, discussed Nepal's position in financial sector liberalization in line with its commitments in the World Trade Organization (WTO).

Inaugurating the programme, Dr Posh Raj Pandey, Member, National Planning Commission, highlighted the on-going preparedness in liberalizing Nepal's financial sector. He assured the government's commitment towards financial sector liberalization including indicating what Nepal can do to maximize the benefits of WTO membership. Presenting a paper at the programme, Mr Navin Dahal, Executive Director, SAWTEE emphasized on the current state of Nepal's financial sector in the context of Nepal's obligations in the WTO. Mr Radhesh Pant, President, Nepal Bankers' Association and Dr Nephil Matangi Maskey, Deputy Director, NRB, commented on the paper.

Regarding the challenges and opportunities that Nepal may face when foreign banks' branches enter Nepal after 2010, participants discussed issues such as the efficiency of the financial regulatory system; challenges to domestic investors; entry provisions for foreign banks; benefits to local consumers; and expansion of the financial sector in rural areas.

Keeping in view the possibility of the entry of multiple foreign banks' branches in Nepal after 2010, participants urged for a strong regulatory role of the NRB. They expressed the view that the role of NRB in the post-2010 period would be crucial in protecting the interests of domestic investors as well as consumers. NRB officials in the programme mentioned that the central bank has been undertaking necessary preparations through research and policy reviews to formulate appropriate legal measures to protect Nepal's interest in the post-2010 period.

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