FDI inflows drop nearly 40 percent amid political uncertainty
Summary
FDI inflows in Nepal dropped nearly 40% in the second quarter of the fiscal year due to violent protests and ongoing political uncertainty, dampening investor confidence and economic activity.
Key Points
- FDI in Nepal declined by nearly 40 percent in Q2 of the current fiscal year due to political instability and fallout from Gen Z protests.
- Nepal received Rs39.25 billion in FDI commitments across 476 projects in the first six months, down from Rs65.09 billion through 850 projects last year.
- Major sectors attracting FDI include agro and forestry, tourism, services, manufacturing, ICT, and energy.
- Political uncertainty and unstable investment climate remain major obstacles to improving Nepal's foreign investment and economic growth.
