FDI Inflow In Nepal Down By 32 Percent


Halt on tourism sector due to the COVID-19 pandemic has directly affected the inflow of foreign investment in Nepal, shrinking FDI inflow by 32 percent to $ 126 million (Rs 14.74 billion) in 2020.

The World Investment Report 2021 of United Nation Conference on Trade and Development (UNCTAD) issued on June 21 stated that the FDI inflow in Nepal shrank because of the stall of tourism sector.

It indicated that disruption in the tourism had a significant impact on the economy through multiple linkages that it entails in various industries.

The reported revealed that Nepal had received significant level of investment in 2019, with Rs. 21.64 billion FDI.

In the last five years, Nepal received highest FDI amount of Rs. 23.16 billion in 2017. The reported showed that foreign investment had reduced to Rs 7.83 billion in 2018.

In the south Asian countries, India topped the recipient of foreign investment with $ 64 billion in 2020. Bangladesh attracted $ 2.56 billion, Pakistan $ 2.1 billion, Sri Lanka $ 434 million, Maldives $ 348 million. Afghanistan received $ 13 million foreign investment. In South Asia, Bhutan received only $ 3 million FDI.

Inflow of foreign investment in 2020 declined in the whole South Asian region except for India.

Source : TRN,