Nepal government reduces minimum threshold for Foreign Direct Investment to Rs 20 million

NL Today

  • Read Time < 1

Kathmandu: The government has revised the minimum threshold for foreign direct investment (FDI) to Rs 20 million from the existing Rs 50 million.

Presenting the budget speech for the fiscal year 2022/23, Finance Minister Janardan Sharma introduced a new threshold to attract more FDI.

The new provision is expected to attract more investment in small and medium enterprises.

In June 2019, the government raised the minimum threshold amount for FDI from Rs 5 million to Rs 50 million.

Nepal Rastra Bank, the central bank, had recommended the government lower the existing threshold in order to attract more investments. In the recommendation letter, the bank had proposed to take measures in different 16 areas in improving the external sector of the economy.