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Nepali Legal System at a glance, 2. Foreign Investment under the law of Nepal, 4. Entry and exit of FDI in Nepal, 5. Rights ,guarantee and security of FDI under the law of Nepal, 7.
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Under FIP, there are five foreign investment areas considered as priority sectors; hydropower, transport infrastructure, agriculture those related to food processing and medicinal herbs processing , tourism and mining. Inconsistencies and uncertainties remain The GoN has made an attempt to create a positive investment climate environment by opening up previously restricted sectors to foreign investment; however, there are still certain inconsistencies which need to be addressed. A widely debated issue of USD 50, minimum threshold for foreign investment does not support new policy changes related to opening up of cottage industries and privately owned business such as personal grooming, driver training, etc. The new policy also allows foreign investment in cottage industries if, and only if, the technology transfer is assured. However, restrictions remain on investment in poultry, bee-keeping and fishery continues. These agro based industries account for 31 percent businesses stake in Agro and Forestry category within all cottage industries. Another huge change included in FIP, is regarding foreign investments in multi-brand retail business.
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June 05, 8: Currently, DoI is providing approval to foreign investments of up to Rs two billion in Nepal. Meanwhile, foreign investments of more than Rs five billion and up to Rs 10 billion must be approved by the Industrial Promotion Board, which is chaired by the industry minister.
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FITTA has extended the negative list sectors in which foreign investment is prohibited to include agriculture, horticulture, and dairy, sectors which many overseas Nepalis are eager to modernise and create jobs back home. Read also: NRNs and foreign citizens of Nepali origins should be given the same rights as Nepali citizens. Monika Deupala Amidst concern that PPPIA concentrates power in the IBN, which does not have much to show for itself, the real question at the Summit this week is whether these hastily-passed bills will remove misgivings of foreigners and NRNs about investing in Nepal.
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