• NPL CB issued 6th foreign direct investment (FDI) in Nepal survey report for 2020/21.
• Follows NPL CB September 2021 reported on FDI in Nepal during 2019/20.

Methodology

• Study primarily based on survey data collected from companies that have taken FDI approvals from NPL CB, with the data verified by reviewing firms' financial statements.
• Data also gathered from governmental and non-governmental agencies and FDI-related published reports, in total 197 companies were surveyed for 2020/21 period.
• Aimed to update and compile FDI stock of Nepal by counterpart economies and economic activities, liabilities of Nepal's international investment position statement.

Contents

• FDI is important source of external financing, remains critical for stimulating growth and employment, significant global flows of FDI in 2021 to pre-pandemic levels.
• In recent years NPL CB has made institutional/legal reforms to promote FDI, creating an investment-friendly environment, prioritizing foreign investment-related reforms.
• These include: Foreign Investment Policy 2015, Foreign Investment and Transfer of Technology Act 2019 (FITTA), Public-Private Partnership and Investment Act 2019.
• Institutional reforms e.g. new One Stop Service Center to facilitate foreign investment, Nepal Rastra Bank Foreign Investment and Foreign Loan Management by-law 2021.