Nepal saw the foreign direct investment (FDI) commitment surge by a massive 266 per cent in the previous fiscal year, 2017-18, owing to improved investment climate in the country
The country received FDI pledge worth Rs 55.64 billion in the previous fiscal as against Rs 15.21 billion worth of FDI pledge in fiscal 2016-17. The pledged amount for a total of 395 projects in 2017-18 is expected to generate job opportunities for 13,228 people, against employment for 11,842 people through 400 projects in fiscal 2016-17.
The statistics are based on the data maintained by the Department of Industry (DoI), which has the authority to approve FDI of up to Rs two billion.
“The country generated a lot of interest from foreign investors in the previous fiscal owing to political stability and the government’s willingness to create a conducive environment for foreign investors,” said Shivaram Neupane, director general of DoI.
The government had formulated Industrial Enterprises Act, Special Economic Zone Act, Foreign Investment and Technology Transfer Act, National Intellectual Property Policy and National Mineral Policy in the last fiscal year. “The government also amended the Company Act as part of second generation economic reform programme to lure more foreign investment into Nepal,” Neupane stated.
He further said that the new policies and acts have allowed foreigner investors to invest in any industrial sector of Nepal, with provisions facilitating operation and exit. In other words, the new rules and regulations have improved the investment climate in Nepal.
According to DoI, Nepal has received comparatively higher investment pledge in six energy-related projects. The projects have received FDI commitment of Rs 36.25 billion, which is expected to generate jobs for 674 people. A total of 66 manufacturing-related projects received FDI pledge of Rs 6.77 billion with expectation to create 3,483 jobs.
Similarly, 156 projects related to tourism sector drew Rs 4.12 billion in pledges with expected job creation for 3,952 individuals.
Three projects in the minerals sector lured investment commitment of Rs 3.8 billion with job creation for 510 people. The services sector drew Rs 2.23 billion in pledge for 118 projects that is likely to provide jobs for 3,797; 20 projects in agro and forestry-based industries got commitment of Rs 1.94 billion with 624 job placements. Also, 26 projects in information technology-based industries received FDI pledge of Rs 538 million, which is likely to provide employment to 788 people.
|Agro and forestry||20||Rs 1,936m||624|
|Information technology||26||Rs 537.8m||788|
A version of this article appears in print on July 18, 2018 of The Himalayan Times.