How to increase foreign direct investment in Nepal?

Published Date: 2019-01-17

Foreign Direct Investment is a net transferred funds to purchase and acquire physical capital such as; factories, machines, industries or some business purpose and also involves the provision of management as well as technologies by the foreign investor. In this modern globalized world, every country is relying on the foreign investment, external capital is necessary for all and are relying on Foreign Direct Investment for the mobilization of domestic resources for accelerating economic growth and industrialization.  Nepal is one of the richest countries in the infrastructure resources and skilled human resources. In recent years, Foreign Direct investment has become one of the major key sources for rapid economic growth in Nepal. In order to increase economic growth and human development, Prime Law Nepal, located in the Kathmandu, has taken some measures allowing foreign direct Investment in Nepal to formulate the appropriate policy and the act 1992.  The primary objective of Prime Law Nepal is to explore the resources, enhance the competitiveness of the domestic firms, promote industrial growth in Nepal and export, particularly in developing countries. To increase Foreign Direct Investment in Nepal, it frequently stimulates competition, productivity, and innovation. Prime Law Nepal is trying to invest in different industries including share (equity), a form of loan or loan facilities, reinvestment of the earning derived from the investment in share, fertile lands, tourism, hydropower, medical tourism, Hospitality sector, and many more. It also tries to generate income and employment opportunities in different sectors such as; higher wages, more revenue, competitive prices, domestic skills and many more. Furthermore, we also make our efforts to enhance entrepreneurial capability when the foreign firms bring with it some firm-specific knowledge in the form of technology, managerial expertise, and marketing. It will promote increasing physical capital, create employment opportunities, develop productive capacity, enhance local skills, through the provision of technologies and management and also help the domestic market to diversify in a global world.
Foreign Direct Investment also allows new local competitors to stimulate competition with local firms, learn about export markets, and provide training for workers. It also plays a significantly vital role for the country like Nepal which development efforts have been constrained by a number of factors. Due to unstable government, hurdles of the political instability of Nepal, organizing a business environment to attract foreign investors has been quite difficult. Even though the Foreign Investment and Technology Transfer Act, (FITTA) 2049, and Industrial Enterprise Act (IEA), 2048 has promoted foreign Investment and technology transfer for making economy viable, competitive, and dynamic in Nepal.

Different factors that Prime Law Nepal deal with to increase Foreign Direct Investments!

Foreign Direct Investment plays a crucial role in developing emerging market trends in the country. It has strong relation between foreign investment and economic growth of the country, which enables the poor capital country to build up physical capital, develop productive capacity, enhance local labors skills, create employment opportunities throughout the country. Prime Law Nepal will make many efforts to increase foreign direct investment in Nepal including, promote quality of the locals product and services, improve better human resources, reduce social problems, create jobs opportunity  and eliminate unemployment rates, provide equality in terms of race, color, creed in the competitive advantages for upgrading business, allow diversification of the local markets, increase business and pay tax accordingly and many more to increase foreign direct investments in Nepal. 


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Contact Details

Advocates & Legal Consultant
Postal Code : 44600
Mobile : +977-9851059026

Office Hours

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