April 29, 2022 | Investopaper
The Foreign direct investment (FDI) has increased in the current fiscal year. According to the Department of Industry, more than Rs. 33.5 billion foreign investment has been approved in a period of nine months (Shrawan-Chaitra) of the current fiscal year 2078/79. This is Rs. 7.28 billion higher as compared to the previous fiscal year.
Such investment approval stood at Rs. 26.14 billion in the corresponding period of the previous year. This is a foreign investment approved by the Department of Industry. Apart from this, foreign investment is also approved by the Investment Board.
The Department of Industry has stated that it has approved investment for 155 industries. In total, foreign investment of around Rs. 398.38 billion has been approved in Nepal so far.
Foreign investors have been seeking approval in the service sector, tourism, information technology, agriculture and forest-based industries, manufacturing and other sectors.
The government has enacted the Foreign Investment and Technology Transfer Act to attract foreign direct investment (FDI). There is ample potential for investment in infrastructure, electricity, tourism, agriculture, information technology and other sectors.
Nepal had started bringing FDI legally in 2038 BS by bringing Foreign Investment and Technology Act 2038 BS. Lately, Nepal has been making legal, structural and procedural reforms in the industrial sector to create an investment environment by attracting foreign investment.
In order to attract foreign investment, the government is preparing to reduce the minimum limit of foreign investment. The Foreign Investment and Technology Transfer Act, 2075 sets the minimum limit for foreign investment at Rs. 50 million.