Nepal plans to raise FDI threshold to $200,000
The introduction of new FDI threshold means that any foreign investors willing to invest in Nepal should commit at least $200,000 worth business ventures.
Nepal's Ministry of Industry (MoI) that is holding talks in regards to raising the FDI threshold with the stakeholders said that the move was planned to control low-level foreign investors whose interest is not to establish industries genuinely but to prolong their stay in Nepal for "whatsoever interests."
"The move is aimed at encouraging quality investment and attract genuine investors,"Nepal's Industry Secretary, Krishna Gyanwali, told Xinhua.
"The threshold is being increased as we received suggestions that the existing threshold will only add to the malpractices as a number of foreign investors have been accused of registering industries here with intention to receive and extend visa and engage other activities,"a high level official at the ministry said.
"Similarly, with the investment threshold of such a meager amount, the industries under FDI can neither create jobs nor contribute largely with industrial productivity." ■