Hima BK

July 21: Investment commitment from domestic as well as foreign investors has increased after the threat of Covid-19 infection subsided. After a decline in investment commitment for two years due to the onset of the pandemic, it has increased by 120 percent in fiscal year 2021/22.

The Department of Industry confirmed that the investment commitment increased by 120 percent in FY 2021/22 compared to the previous two fiscal years.

During the review year, domestic and foreign investors registered 309 industries with a commitment to invest Rs 343 billion.

In Fiscal Year 2020/21, a total of 201 industries were registered with the department with investment commitment of Rs 156 billion. Although the risk of Covid-19 is not yet fully over, the investment commitment increased during the last fiscal year after the threat subsided to a great extent.

Before the Covid-19 pandemic, the investment commitment in the Fiscal Year 2018/19 was worth Rs 285 billion. According to the Department of Industry, the investors had registered 441 industries back then.

Director General of the department Ram Chandar Tiwari says that the investment  commitment which declined during the period of Covid-19 increased once again during the last fiscal year. However, he says that the increase in investment commitment is also due to other factors beside the decline in rate of infection.

“We had been making efforts to create an investment-friendly environment and to attract the investors by formulating new laws and amending old regulations. We also focused on administrative reforms,” said Tiwari, adding, “This also helped in improving investment commitment.”

However, registration of industries and commitment from the investors does not ensure that the investment will be made immediately.

“We should not be disheartened if the investment is not made as per the commitment. We are hopeful if the investment commitment increases that increases the prospect of actual investment,” said Tiwari.

Director General Tiwari claimed that the actual investment is around 50 to 60 percent of the commitment made by the investors in recent years.

The government has not worked extensively to ensure that the investment commitment is actually invested.

Nepal ranked 110^th in the Doing Business Report published by the World Bank in 2019. The next year, Nepal ranked 94^th in the Doing Business Report due to improvement in investment-friendly environment. The then finance minister Yubaraj Khatiwada had objected to the World Bank report that placed Nepal in the 110^th position in the Doing Business ranking. Although there has been an improvement in creating a conducive environment for business, Nepal’s trade deficit is high.

Indtead of increasing exports and consumption of domestic goods, imports have  increased. According to the Department of Customs, Nepal’s trade deficit in the past 11 months stood at Rs 15.77 billion.