This study report identifies challenges Nepal faces in terms of attracting foreign direct investment (FDI) and developing a framework for the second generation of reforms.
It has been more than twenty years since the first generation of reforms in FDI took place in the form of Foreign Direct Investment and Technology Transfer Act of 1992, opening up several sectors previously barred from FDI while maintaining a small negative list. However, owing to the growth of FDI in emerging markets (especially in Asia), it is time for Nepal to embark on the second generation of reforms.
This paper focuses on reform areas to ensure FDI actually trickles down and helps through creation of jobs and capital formation. It contains historical analysis, key policy bottlenecks and specific recommendations.
It is also published in Nepali.