Nepal looks for foreign investment in IT, hydropower and tourism

OCTOBER 25: Deputy Prime Minister and Finance Minister Bishnu Paudel stated that Nepal’s information technology (IT) sector holds significant potential and urged U.S. investors to seize the opportunities available.

Paudel, who travelled to the United States earlier this week to attend the annual meetings of the World Bank Group and the International Monetary Fund, made these remarks at an interaction program organized by the American Chamber of Commerce and Industries.

The event featured representatives from multinational companies, including Google, Meta, and Coca-Cola, among others.

The Nepal government and the private sector have been urging foreign firms to increase investment in the country, as Nepal faces a significant resource gap in meeting its development goals.

This fiscal year, the government aims to raise Rs 547 billion through public debt, with approximately Rs 217 billion expected from external loans. Despite efforts, Nepal has received only a fraction of the pledged foreign investment.

While Foreign Direct Investment (FDI) increased by 36.1 percent in the last fiscal year, the actual amount was just Rs 8.4 billion. Notably, the country had secured FDI commitments totalling Rs 61.9 billion, meaning only around 13.5 percent of the pledged investment was realized.

In the first quarter of the current fiscal year, Nepal received Foreign Direct Investment (FDI) commitments worth Rs 16.4 billion for 204 industrial projects.

Along with Deputy Prime Minister Bishnu Paudel, the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Dhakal—who is also in the U.S.—highlighted investment opportunities for foreign firms, particularly in Nepal’s hydropower and tourism sectors.

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