Nepal’s FDI commitments shrink as political turmoil dents investor confidence
Summary
Nepal's foreign direct investment commitments dropped by 10 percent last fiscal year due to political turmoil and policy uncertainties, despite a rise in actual inflows. Key sectors receiving investments include agriculture, tourism, and manufacturing, with China leading as the largest investor source.
Key Points
- Foreign direct investment commitments to Nepal fell by 10 percent in the fiscal year ending mid-July due to political instability.
- Nepal received FDI commitments worth Rs58 billion for 1,117 projects, expected to generate 28,645 jobs.
- China remained the largest source of FDI commitments, followed by India and Hong Kong.
- Actual foreign investment inflows more than doubled to Rs22.82 billion in the first 11 months, despite a widening gap between pledges and inflows due to policy and institutional issues.
