FDI flow nearly doubled in H1 of FY2017/18

Published On: February 15, 2018 06:00 AM NPT By: Republica  | @RepublicaNepal


KATHMANDU, Feb 15: Foreign Direct Investment (FDI) flow in the first six months of FY2017/18 nearly doubled to Rs 14.33 billion compared to Rs 7.9 billion in the first half of the last fiscal year, a recent data of Nepal Rastra Bank (NRB) shows.

Total FDI flow in the first half of the current fiscal year is higher than total foreign direct investment that the country had received in entire FY2016/17. In the first six months of FY2016/17, Nepal had received total FDI of Rs 13.5 billion.

Deputy Spokesperson of NRB, Rajendra Pandit, told Republica that investors, who had already got investment approvals, brought their money to Nepal in the review period. “Such investors might have felt that this is appropriate time for investing in Nepal as the country achieved a record economic growth of the 7.5 percent. Also political situation has become stable now,” added Pandit.  

FDI commitments have also increased considerably in the first half of FY2017/18. Department of Industry (DoI) has approved FDI of about Rs 13 billion in the first six months of the current fiscal year. This commitment also shows that country's investment climate has improved.

Another investment commitment from China worth Rs 20 billion for building a hydropower project also have been approved by the Industrial Promotion Board under the Ministry of Industry, according to the ministry. 

Khagendra Basnet, director of Department of Industry, termed political stability and priority given by all political parties for economic development as the major reasons behind rise in investment commitments. 

A lion's share of FDI is coming to sectors like hydropower, mining, herbs production and processing, and information technology, among others. 

“In addition to investment commitments in hydropower projects, foreign investors have also sought permission to invest in new sectors like IT where the country has huge potentials,” added Basnet.


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