Promises and realities of FDI in Nepal

The Department of Industry (DOI) has reported an increase in FDI pledges and commitments in the last quarter. Nepal received FDI commitments worth NRs 19 billion for 89 projects between July and November 2020. Compared to the same period in FY 2019-2020, Nepal had garnered NRs 18.94 billion in FDI pledges. Even the domestic investors have expressed a heightened interest in pledges, especially in the hydropower sector. The increase, though minuscule, is being looked at as an achievement given the ongoing pandemic. However, the point of departure of this piece is not to ponder on the optics of this news but to see what challenges lie ahead in the context of Nepal’s public policy domain. Continue reading..