Foreign investment commitment of 13 billion in two months

According to the Department of Industry, commitments of 9.15 billion 2.5 million rupees were received in July and 3.83 billion 2.4 million rupees in August. In July of the last financial year, investment commitments of 11.93 billion rupees and 2.69 billion rupees were made in August. In the last financial year, foreign investment commitments of 54.87 billion rupees were received, while only 8.46 billion rupees were received. 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 information technology based industry. 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 committed 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 the same time. In the last fiscal year, only 5.96 billion 1.3 lakh rupees of FDI has entered Nepal. Although a total of 7.76 billion 86 million foreign investments came in, the net foreign investment was seen as 5.96 billion 13 million rupees due to the outflow of old investments equal to 1.8073 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 Although a total of 19.21 billion 90 million came in, old investments equal to 658.7 million rupees were withdrawn. Therefore, the net foreign direct investment is 18.56 billion 3 lakh rupees. Since the previous fiscal year, the government has taken a flexible policy since the foreign direct investment started to come in less.

In the last financial year, the minimum limit of foreign investment has been maintained from 50 million to 20 million. It is said that through the budget of the last 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 the Department of Industry says that the limits have been set regionally so far. Restrictions on inward investment through the automatic route have been removed for the information technology industry.