Policy instability, weak implementation continue to deter foreign investment in Nepal
Summary
Nepal continues to struggle in attracting foreign direct investment due to policy instability and weak implementation, with calls for decentralized decision-making and infrastructure development to improve the investment climate.
Key Points
- Nepal's foreign direct investment has remained below 1 percent of GDP for over three decades, around 0.2 percent in recent years.
- Policy instability and frequent changes have deterred multinational companies from investing confidently in Nepal.
- CEOs and industry leaders call for decentralization, stability, and clarity in policy implementation to promote investment.
- Infrastructure development and the establishment of Special Economic Zones (SEZs) are critical to attract and retain investments.
