Kathmandu, January 7
Nepal has approved foreign direct investment worth as much as Rs 13 million in the first five months of current fiscal year 2017/18, says the government.
The amount is almost equal to the total foreign investment commitment made in the previous fiscal year 2016/17.
The Department of Industry says investment worth Rs 13 billion has been approved for 142 companies since the beginning of this fiscal year in mid-July. Last year, the Department had approved investment worth Rs 15 billion.
“Therefore we have estimated that we will received at least Rs 26 billion in total,” Chief of the Foreign Investment Division at the Department, Khagendra Bahadur Basnet, says.
If the government meets its target, it will be the highest amount of investment in past five years as foreign investment commitment before 2016/17 was minimal.
“Nevertheless, the number of industries to have established with foreign investment has increased consistently,” Basnet informs.
According to the official, eight factories will be established with the foreign investment of more than Rs 2 billion this year. Some key sectors that have been most attractive for foreign investors include herbs, beverage and cement industries. Garment industry has attracted the investment in a small amount.
Nepal Rastra Bank says of 37 of 252 companies established with foreign investment are working in the production sector. Only 11 of them are exporting their products abroad.
“How much money we can bring is determined by how the new government will create investment environment.”
