Nepal Sees Big Boost in Foreign Investment Commitments
Nepal has experienced a significant increase in foreign investment commitments, reaching NPR 16.4 billion in the first quarter of the current fiscal year, from September to October. The Department of Industry reported that NPR 3.45 billion was pledged in September alone. Among these, NPR 150 million was committed to 21 industries through an automatic approval route, a system introduced after the Third Nepal Investment Summit in April to simplify the process for foreign investors.
Additionally, NPR 3.3 billion was pledged for 34 industries through the approval route. The tourism sector received the largest share of foreign investment, accounting for 64% of the total commitments, followed by the services sector at 24%, manufacturing at 7%, agriculture at 4%, and information technology at 1%.
Compared to the previous fiscal year, which saw foreign investment commitments of NPR 61.90 billion, the current trend is promising. However, actual net foreign investment last year was only NPR 8.40 billion, according to Nepal Rastra Bank. This gap highlights challenges in converting investment pledges into real economic growth.
The positive investment environment indicates growing confidence in Nepal’s economic potential, with the government working to improve the investment climate.
Doubts Revealed
Nepal -: Nepal is a country located in South Asia, sharing its borders with India and China. It is known for its beautiful mountains, including Mount Everest, the highest peak in the world.
Foreign Investment -: Foreign investment is when people or companies from other countries put their money into businesses or projects in a different country. This helps the country grow its economy by creating jobs and building new things.
NPR -: NPR stands for Nepalese Rupee, which is the currency used in Nepal. Just like in India we use the Indian Rupee, in Nepal, they use the Nepalese Rupee for buying and selling things.
Fiscal Year -: A fiscal year is a 12-month period that companies and governments use for accounting and budgeting. It doesn’t always start in January; for example, in Nepal, it might start in mid-July.
Tourism Sector -: The tourism sector includes businesses and activities related to people traveling for fun, like hotels, travel agencies, and tourist attractions. In Nepal, this is a big part of the economy because many people visit to see the mountains and cultural sites.
Investment Climate -: Investment climate refers to how easy or difficult it is for people to invest money in a country. A good investment climate means there are clear rules, safety, and opportunities for investors to make money.
