RSS   Newsletter   Contact   Advertise with us

Nepal plans to raise FDI threshold to $200,000

Staff writer ▼ | May 13, 2014
The Nepal government is preparing to revise its threshold for foreign direct investment (FDI) by four fold from the existing $50,000 from the beginning of the coming fiscal year, officials said.
Nepal
NepalThe Nepal government is preparing to revise its threshold for foreign direct investment (FDI) by four fold from the existing $50,000 from the beginning of the coming fiscal year, officials said.


The introduction of new FDI threshold means that any foreign investors willing to invest in Nepal should commit at least $200,000 worth business ventures.

Nepal's Ministry of Industry (MoI) that is holding talks in regards to raising the FDI threshold with the stakeholders said that the move was planned to control low-level foreign investors whose interest is not to establish industries genuinely but to prolong their stay in Nepal for "whatsoever interests."

"The move is aimed at encouraging quality investment and attract genuine investors,"Nepal's Industry Secretary, Krishna Gyanwali, told Xinhua.

"The threshold is being increased as we received suggestions that the existing threshold will only add to the malpractices as a number of foreign investors have been accused of registering industries here with intention to receive and extend visa and engage other activities,"a high level official at the ministry said.

"Similarly, with the investment threshold of such a meager amount, the industries under FDI can neither create jobs nor contribute largely with industrial productivity."


 

MORE INSIDE POST