In 11 months, only 14.99 percent of the foreign investment was received

From July to May of the current financial year, investment commitments of Rs. On the other hand, according to the data of Rashtra Bank, only 8 billion 16 billion 22 million rupees of FDI has entered.

Even though foreign investment came in at 8 billion 236 million rupees, as old investments worth 739 million rupees were withdrawn, net foreign investment was seen at 8 billion 162 million rupees, according to the data of Rashtra Bank. It is mentioned in the monthly report of Rashtra Bank that the amount received during the same period of the current financial year is 75.6 percent more than the 11 months of the last financial year.

FDI commitments of 11 billion 294 million rupees were received in May of the current financial year alone. The highest investment commitment was 13 billion 44 crore 46 lakh rupees in Baisakh and the lowest investment commitment was 345 million rupees in January. Last May, from the third investment conference, the Department of Industry implemented the system of foreign investment approval through the automatic route. Domestic and foreign investments can be made in industrial businesses with a total capital of up to 50 million rupees through the

automatic route. Minimum limit is not applicable in IT based industry . In May, a commitment of 8 billion 279 million rupees was received from the automatic route . The department said that foreign investment commitments have also increased since the automatic route system was started.

After the third investment conference held last May, FDI commitments are increasing . But FDI has not come in. Economist Keshav Acharya says that although the investment conference held in Baisakh increased the confidence among traders and businessmen, it has now decreased.

According to the data of Rashtra Bank, the maximum amount of 2 billion 64 crore 62 lakh rupees has been received in July. The lowest was Rs 27 crore 1 lakh in October. 1 billion 18 billion rupees of FDI has been received in May.

Nepal Rastra Bank's data shows that despite the increase in foreign investment commitment, the inflow amount is low. Stakeholders say that there is no policy arrangement that all the foreign investments that have been promised will come or should come in the same period .

When the government approves foreign investment, the stakeholders also say that they allow investors to bring in investment in stages (in installments). Government officials also say that the commitment and approved amount will not be received at once.

Economist Acharya believes that FDI has not been able to enter due to political stability, policy certainty (sometimes VAT, sometimes income tax), lack of infrastructure. "One part of political uncertainty is policy uncertainty, the lack of infrastructure (the road will be blocked during rains)," he said. Unless there is an investment-friendly environment, we should not expect it.'

Since 079, although Pushpa Kamal Dahal has been in government, he said that sometimes Congress and sometimes UML have failed to bring in FDI due to political instability. "Meanwhile, businessmen like Meen Bahadur Gurung and Arun Chaudhary were harassed," Acharya said, "The government has not paid the construction businessmen." Both imports and exports are declining. Acharya's argument is that foreign investors cannot be expected to invest unless the confidence of domestic investors can be increased. "If indigenous investors are afraid to invest, how can foreigners come and do it?" he said. He says that getting 8 billion in even in adverse conditions is a big issue. Acharya said that if there is an investment-friendly environment, it is not a big issue for domestic investors and there is currently no encouraging atmosphere for domestic and foreign investors.

In the last financial year, only 5.96 billion 1.3 million rupees of FDI has entered Nepal. Although a total of 7 billion 76 billion 86 million rupees foreign investment came in, due to the outflow of old investments equal to 1 billion 80 million 73 million rupees, the net foreign investment was seen as 5 billion 96 million 13 million rupees . In the financial year 078/79, foreign investment commitments of 54 billion 15 crore rupees were received in 295 industries.

In that year, the net foreign direct investment was 18.56 billion 3 lakh rupees. Although a total of 19 billion 219 million was received, the old investment worth 6587 million rupees was withdrawn. Therefore, net foreign direct investment has come in at 18 billion 563 million rupees.

Since the previous fiscal year, the government has taken a flexible policy since the foreign direct investment has started coming in less. In the last financial year, the minimum limit of foreign investment has been fixed from Rs 5 crore to Rs 2 crore. It is said that through the budget of the current financial year, the minimum limit of foreign investment will be reviewed and the limit will be set regionally. The government has mentioned in the budget that the limit of foreign investment in the information technology industry will be removed. But so far, the industry department has stated that the limits have been set regionally. Limitation of inward investment through automatic route of information technology industry has been removed .

It is mentioned in the budget statement that an investment conference will be held in 080 to attract foreign investment. Although the government organized an investment conference, the amount of investment in other conferences was not encouraging.

However, experts say that the comment that all political parties are committed to facilitate foreign investors is established. The Bill, 081, to amend some Nepal Acts related to investment facilitation, passed by both houses of the Federal Parliament on June 24, has been certified by President Ramchandra Paudel.

Aiming at the third investment conference held last May, the government introduced a bill, 081, to amend some Nepal Acts related to investment facilitation through an ordinance to facilitate legal arrangements for domestic and foreign investment.

Land Act through Ordinance, 021, Land Acquisition Act, 034, Electronic Transactions Act, 063, Special Economic Zones Act, 073, Foreign Investment and Technology Transfer Act, 075, Public Private Partnership and Investment Act, 075, Forest Act 076 and Industrial Business Act, 076 have been amended .