KATHMANDU, Dec 9: Foreign Direct Investment (FDI) inflows have increased this year after the transmission of COVID-19 declined. According to the Department of Industry (DoI), foreigners have taken permission to invest around Rs 30 billion in Nepal in the first four and a half months of the current fiscal year.
Compared to last year, the commitment has increased by about Rs 10 billion. An investment of Rs. 29.85 billion has been sanctioned for 120 projects till December 1 of the current fiscal year. In the corresponding period of the previous Fiscal Year 2020/21 (up to November 30), a total of Rs 19.85 billion was sanctioned.
Foreign investment commitments reach Rs 53 billion in 10 months...
Although Rs 32 billion was sanctioned for foreign investment in the last year, sanctioning FDIs worth around Rs 30 billion in less than six months this year is positive, officials say. Suresh Shrestha, director at DoI, said that foreign investment approval has increased this year due to the reduction in the COVID-19 infection. “Foreign investment approvals are higher now than last year,” said Shrestha. “The investment environment in the country is improving.”
Foreign investment has been approved for investment in industries related to agriculture and forestry industries, hydropower, information technology, manufacturing industry, services and tourism. It is stated that 7,738 jobs will be created from foreign investment.
Although the country has been in a state of stagnation for a long time due to COVID-19, there has been an encouraging increase in FDI. Proposed employment also declined last year after foreign investment approvals declined.
The government has stated that it has been making policy reforms including holding an investment conference to attract foreign investment. Government officials maintain that the amount of foreign investment coming to the country is still not as expected due to procedural hurdles.
