Commitment to FDI decreased by 14% in the first 10 months of the current FY

KATHMANDU: In the first ten months of the current fiscal year, Nepal received FDI commitments totaling Rs 29.74 billion, which is 14% less than the commitment amount in the same period last year.

According to the Department of Industry’s records, foreign investors promised to invest Rs 34.54 billion between mid-July 2021 and mid-May 2022. The amount of FDI commitments increased noticeably over the last three months.

The FDI pledged amount was only Rs 17.30 billion as of the first six months, a sharp decrease from Rs 30 billion during the same period last year. According to DoI statistics, over Rs 12 billion more in commitments were made in the last three months of this year than they were at the beginning.

The main factor causing a decline in FDI, according to economist Keshab Acharya, is a lack of an ideal investment environment in the nation. It is impossible to draw in more foreign investors at a time when domestic investors are reluctant to make additional investments in the nation, according to Acharya. .

The ongoing global economic slowdown has, according to DoI officials, also had an impact on foreign investors this year.

Between mid-April and mid-May, Rs 1.64 billion in FDI pledges were made during that time period. Foreign investors promised to invest in 28 projects last month and to create 1,272 jobs in exchange. .

Since October 14, the government has adopted a flexible policy in an effort to draw in more FDI. The government reduced the FDI minimum threshold from Rs. 50 million to Rs. 20 million.

Over Rs 400 billion in FDI commitments for the opening of more than 5,500 firms have already been given to Nepal. More than 300,000 individuals have been offered jobs by these businesses.