Nepal received more than two thirds of the total foreign direct investment (FDI) pledges from China during the first half of the current fiscal year that began in mid-July, according to data from Nepal’s Department of Industries (DoI).
According to the DoI statistics, Nepal received investment pledge of 51.77 million U.S. dollars from China during the first half of the current fiscal year.
The figure represents about 68 percent of total FDI of 76.39 million U.S. dollars Nepal was pledged from various countries during the period.
In recent years, China has emerged as one of the largest FDI contributors to Nepal, as economic engagement between the world’s second largest economy with the Himalayan country has been growing.
In the past fiscal year 2015-16, China was the largest source of FDI pledges with an investment commitment of 57.47 million U.S. dollars.
Pradeep Kumar Koirala, director general of DoI told Xinhua that Chinese investors are largely seen interested in tourism, infrastructure and restaurant businesses in Nepal.
For Satish More, a director of Hongshi-Shivam Cement Private Limited, a Nepal-China joint venture, the Chinese investment in Nepal has been rising in recent years because Nepal is an underdeveloped country and there are opportunities for investment in almost all areas.
“There is a scope for increased investment from China if we develop our infrastructure,” he said.
During the first half of the current fiscal year, the total pledged FDI increased to 76.39 million U.S. dollars up from 59.93 million U.S. dollars during the same period last fiscal year when the country had gone through troubling blockade from India. Endit