China tops in FDI pledges to Nepal in first half of FY 2017-18

KATHMANDU - China contributed to around 58 percent of foreign direct investment (FDI) commitments received by Nepal during the first half of the current fiscal year that began in mid-July 2017, Nepal's Department of Industry (DoI) said on Friday.

According to DoI statistics, Nepal received FDI pledge of 8.08 billion Nepali Rupees ($79.26 million) from China in the first half of the current fiscal year, which is 57.73 percent of the total FDI pledges received by the Himalayan country during the period.

Nepal received total FDI commitments of 14 billion Nepali Rupees ($137.30 million) during the period, according to the DoI which registers the industries.

India came second with FDI pledges of 3.73 billion Nepali Rupees ($36.63 million), according to the department. The United States, Japan and Italy came third, fourth and fifth.

China topped the chart in the last two consecutive fiscal years, 2016-17 and 2015-16, according to the DoI.

Shankar Aryal, director general of DoI told Xinhua on Friday that he saw a growing investment pledges from Chinese companies in the areas of hydropower, cement, herbal medicines and tourism sector in recent years.

He said Nepal's investment climate has been improving in the last few years with the power crisis almost ending and the Nepali government taking more measures towards policy reforms to attract domestic and foreign investment.

Nepal has introduced new Industrial Enterprises Act, Special Economic Zone Act and new Foreign Investment Policy lately, offering more facilities to investors and easing the process of investing in Nepal.