FDI flow

Nepal needs humble actions and strong political follow-through to attract adequate development funds.

The political rhetoric on Nepal’s development ambitions is high decibel. Yet, for decades since the first generation of economic reforms began in the early 90s, Nepal’s grand economic plans have been hobbled by the absence of humble but sustained actions—falling behind regional peers. The regulatory environment has failed to keep up with developments in both richer and emerging economies. The Maoist movement and protracted political instability eroded early progress. However, even after the promulgation of the new constitution in 2015, the same issues continue to affect Nepal’s ability to attract and sustain varied sources of financing to meet its development needs—despite regularly organising numerous summits meant to attract foreign investments.