23 June 2021, Kathmandu
Corona epidemic makes various impacts on investment. Mainly in international projects in the field of information technology in the least developed countries have been negative.
United Nations Trade and Development Council (UNCTAD) on Monday releases a World Investment Report 2021.
Foreign investment in the field of information technology in the least developed countries, including Nepal is 100 percent negative.
According to the report, greenfield investments increased from USD 0.3 Arab in 2019 to USD 1.9 Arab in 2020.
The impact of the epidemic was not seen at that time.
Now there is 100 percent negative investment in international project finance.
USD 2.1 Arab was invested in such international project finance in 2019, but in 2020 that investment is zero. The Covid epidemic has affected it 100 percent.
Meanwhile, in the field of information technology, China Mobile has started investing in Nepal to build a USD 1 Arab mobile data network.
But there is no information on where and how the investment was made.
Similarly, the corona transition around the world also affected the tourism sector. It has had a direct impact on foreign investment entering Nepal.
As a result, Nepal’s foreign investment has shrunk by 32 percent to Rs 14.74 crore by 2020.
World Investment Report 2021 shows, foreign investment has been affected as the tourism sector, which is also linked to other economic activities, is also affected.
Nepal had received high foreign investment in the 2019 report. In that year, Nepal had attracted foreign investment of Rs 21.64 crore.
Comparing the last five years, 2017 saw a record high foreign investment of Rs 23.16 crore. In 2018, foreign investment fell sharply to Rs 7.83 crore.
Of the South Asian countries, India is the largest recipient of USD 64 Arab in foreign investment by 2020.
Bangladesh has invested USD 2.56 crore, Pakistan USD 2.1 crore, Sri Lanka USD 46 crore, and Maldives USD 34 crore.
Afghanistan has invested only USD 30 lakhs.
Bhutan has the lowest inflow of foreign investment at USD 30 lakhs.
With the exception of India, foreign investment from all South Asian countries in 2020 has declined compared to the previous year.