20 August 2024, Kathmandu
Chandra Prasad Dhakal, President of the Federation of Nepal Industry and Commerce, has voiced concerns about Nepal’s current state of foreign direct investment (FDI).
President Dhakal Highlights Weak Foreign Direct Investment
Speaking at the ‘Finance for Development’ dialogue program, organized jointly by the United Nations, the Ministry of Finance, and the Nepal Chamber of Commerce and Industry, Dhakal emphasized the alarming inadequacy of FDI in the country.
Dhakal revealed that foreign direct investment constitutes a mere 0.2 percent of Nepal’s Gross Domestic Product (GDP), which he described as critically low for a nation in Nepal’s economic position. He expressed frustration over the shortfall in foreign subsidies, which have not met the expected targets.
The president warned that the increasing reliance on debt is unsustainable and poses significant risks to Nepal’s economic stability. He pointed out that as Nepal transitions from a least developed country status, the growing dependence on loans could exacerbate existing challenges and undermine economic progress.
“This low level of foreign direct investment is a serious concern,” Dhakal stated. “Our economy needs substantial foreign investment to drive growth and development, but the current figures are not promising. We must address these issues to prevent further economic instability.”
Dhakal’s comments reflect broader concerns about Nepal’s economic strategies and the effectiveness of its policies in attracting and retaining foreign investment. The dialogue program highlighted the urgent need for reforms to improve the investment climate and reduce the country’s dependence on debt.
As Nepal continues its development journey, addressing these issues will ensure sustainable economic growth and stability. The government and industry leaders will need to collaborate closely to create a more favorable environment for foreign investors.
President Dhakal Highlights Weak Foreign Direct Investment
