US ambassador to Nepal Scott H. DeLisi has said remittance coming from Nepalis abroad, which has been an important component of the country's economy, will cause devastation on Nepali economy in the long run.

Speaking at an interaction organised by Society of Economic Journalists of Nepal (SEJON) in Kathmandu Thursday, the US ambassador said that remittance provides a short-term boost to the economy though it might currently be the lifeblood of Nepal's economy.

"In Nepal today, remittance flows are fueling increased consumption but by all indicators, are not being channeled into productive investment. Nepal's competitiveness and productivity continue to decline over the long term," said American envoy in a written speech.

DeLisi also expressed commitment on behalf of US government to promote trade and investment in Nepal.

"The US and Nepal recently signed a Trade and Investment Framework Agreement to facilitate trade and investment and resolve disputes. We are working to prepare for the second TIFA council meeting in the coming months in Kathmandu," he informed. nepalnews.com