Nepal – CB Update on Foreign Direct Investment

Nepal – CB Update on Foreign Direct Investment

On 13 September 2022, NPL CB updated on foreign direct investment 2020/21.

  • 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.


  • 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.


  • 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.