Nepal’s FDI pledges soar, but actual inflows stay paltry
Summary
Nepal received record-high foreign direct investment commitments last fiscal year, but actual inflows were less than a fifth of pledged amounts due to procedural delays, corruption, and political instability.
Key Points
- Nepal's actual foreign direct investment inflows are significantly lower than pledged commitments, with only Rs12.02 billion realized against Rs64.96 billion pledged.
- Procedural delays, outdated laws, corruption, and political instability are major obstacles preventing foreign investors from investing in Nepal.
- Examples such as failed hydropower projects and the shelved Dangote cement project highlight Nepal's challenges in attracting and retaining foreign investment.
- Nepal's re-inclusion on the FATF grey list and low international ratings further discourage foreign investment and complicate financial transactions.
