KATHMANDU, July 31 (Xinhua): Nepal received the highest foreign direct investment (FDI) commitment of 9.81 billion Nepali rupees (some 144 million US dollars) in the last fiscal year, as a housing boom and newly-explored hydro potentials lured overseas investors, The Kathmandu Post reported today.
"Last year saw a sound peace dividend in FDI. We were long due to receive such an encouraging response," said Tilak Ram Sharma, director general of the department of industry.
Government statistics showed that the department approved 212 foreign investment projects during the year with the energy sector leading the list.
In the previous year, the country had received FDI commitment of 2.88 billion rupees (some 42.35 million dollars). FDI commitment was 2.76 billion rupees (some 40.58 million dollars) five years ago in fiscal year 2003/04. "A good thing, unlike in the past, is that the capital has already started to funnel in for major projects," Sharma was quoted by the daily as saying.
According to the daily, after a gap of a few years, the agricultural sector received 11 foreign investment projects in 2007/08 fiscal year ended in mid-July. The tourism sector lured the maximum number of FDI projects, 67 during the year, whereas the regular topper in attracting FDI, the manufacturing sector, saw 51 FDI projects registered during the year.
According to the daily, Nepal received FDI commitment from investors across 39 countries. As usual, Indian investors topped the list of maximum FDI generator during the year.
Likewise, FDI commitment of 2.92 billion rupees (some 42.94 million dollars) was received from South Korean investors. China, with an FDI commitment of 448 million rupees (some 6.6 million dollars), was the third largest investment generator for Nepal during the year, said the report. The FDI projects registered last year are estimated to create employment for 10,677 people.
