FDI realisation doubles this fiscal
Kathmandu, February 17
The country has witnessed an increase in foreign direct investment (FDI) realisation in this fiscal.
FDI inflow has almost doubled in the first half of the ongoing fiscal year as compared to the corresponding period of the previous fiscal.
As per Nepal Rastra Bank, the country received FDI worth Rs 14.33 billion in the review period compared to Rs 7.39 billion of the corresponding period of fiscal year 2016-17.
Though the country has seen FDI commitments soar in the recent past, realisation was nominal compared to the pledged amount.
Contribution of FDI in the country’s gross domestic product (GDP) stands at 0.4 per cent, far below the average of the least developed countries. To be at par with the average figures of other least developed countries, Nepal requires to increase its FDI inflow to $800 million from the current $100 million, according to experts.
Due to the successful completion of the recent polls and expectations of political stability, foreign investors have been eyeing to make investments in Nepal. The government has initiated some reforms by amending related laws and simplifying the process of entry and exit for foreign companies.
Experts have suggested the government to provide online company registration and FDI approval facility to foreign
investors and also simplify all the processes involved for foreign investors to attract more FDI in the country.