Only 14 Percent of Approved Foreign Investment Has Materialized

The actual amount received is found to be extremely low compared to the approved foreign investment. According to the 33rd annual report of the Office of the Auditor General, in the fiscal year 2081–82, investment proposals worth NPR 7.969 billion were approved from 1,009 foreign investors. Out of that, only NPR 1.13 billion was received from just 97 investors, which is 14 percent of the approved investment. According to public reports, recently the ratio of foreign investment commitments to actual receipt has been declining. In FY 2079–80, out of the approved proposals worth NPR 3.248 billion, only NPR 920 million was received, which is overall 28 percent. Similarly, in FY 2080–81, only 13 percent of the approved investment was received. In that fiscal year, out of NPR 8.169 billion approved for investment, only NPR 1.029 billion was received.

This data shows that the gap between the commitment of foreign investment and actual realization has been widening. The Auditor General’s Office report has suggested to the concerned authorities to maintain policy stability, simplify administrative processes, and create an investment-friendly environment to convert commitments into actual investments.