KATHMANDU, April 11: The government has started a workout to reduce the threshold amount for foreign direct investment (FDI) from the existing Rs 50 million.
At a time when Nepal is facing a pressure on its current account balance due to heavy drain of foreign currency against slow financial inflow, the government is considering revising the threshold limit to attract more foreign currencies. For this purpose, the government last month formed a task force led by Ram Chandra Tiwari, director general of the Department of Industry.
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Tiwari said they have been receiving complaints against the existing ceiling on FDI. According to him, the panel has started talks with various stakeholders to discuss the possibility of revising the minimum amount for FDI.
In June 2019, the government raised the minimum threshold amount for FDI from Rs 5 million to Rs 50 million. The government move, however, had invited widespread criticism from the private sector on the ground that provision could lead to FDI inflow on small businesses such as restaurants and coffee shops more than large investments.
