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Foreign Investment Down this Year

  2 min 4 sec to read

Foreign Direct Investment (FDI) in Nepal has gone down in the current fiscal year 2016-2017. Compared to the last fiscal year, foreign investment has drastically gone down this year. During the last fiscal year, foreign investment had decreased as a result of the devastating earthquake and blockade. However, this year it was expected to rise after the formation of laws related to investment, International Investment Summit, Infrastructure Summit and some other positive indicators.

Investors from different countries had also pledged to invest more than Rs 1400 billion during the International Investment Summit about four months ago, but those commitments haven’t materialized yet.

During the last FY, foreign investment in Nepal was Rs 1525 billion. However, now the investment is just Rs 1420 billion. The amount is Rs 104 billion less than the previous year.

Foreign investment in Nepal couldn’t increase in the current fiscal year as the country was still reeling under the effects of the earthquake and blockade of 2015, according to Shekhar Golchha, senior vice-president of FNCCI.

“In terms of investment, there is relatively a better environment as compared to the past. The energy crisis has been solved to a great extent. Now, the effects of the blockade and earthquake will not last long. We can hope of increase in foreign investment in soon now,” said Golchha.

Shankar Aryal, director general of the Department of Industry, said it was a matter of concern that Nepal has not able to attract foreign investment despite having favorable environment.

"The government is trying its best to increase foreign investment.  So, the effort of this year may bring good results in investment in the next year," he said.

Till date, investors from 91 countries have invested in Nepal. According to the statistics of DoI, the total foreign investment that Nepal has received till now is Rs 212 billion.

Foreign investment from the following countries has decreased:

Australia, Austria, Brazil, British Virgin Islands, China (main territory), Denmark, Japan, the Philippines, Russia, Singapore, Switzerland, Turkey, Great Britain,  America, Columbia, Greece, Lebanon, Mauritius, Norway, Poland, Romania, Sweden, Syria, Yemen.

Foreign investment from the following countries has increased:

Bangladesh, Belgium, Canada, Hong Kong, Taiwan, Cyprus, France, Germany, India, Israel, Italy, Malaysia, Mexico, Netherlands (Antilles), Nigeria, Pakistan, Samoa, Saudi Arabia, South Korea, Spain, Thailand, The Netherlands.

 

 

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