Kathmandu, Apr. 26: Some 560 joint ventures in collaboration with foreign investors have been permitted in Nepal to date following the restoration of democracy in Nepal.
According to statistics provided by the Department of Industry, the total outlay in the joint ventures is about Rs.60 billion.
Only 154 joint ventures had been sanctioned five years ago, and in the following years, on average 60 projects have been sanctioned every year.
Of them, the number in the manufacturing sector is 255. Tourism and the service sector have played a growing role in attracting foreign investors to Nepal.
On a country-wise basis, Indian investors have played a large part in the joint ventures in Nepal. Some 171 joint venture projects from India have received licenses.
They account for 33 per cent of the total of joint venture projects. India also accounts for the same percentages in terms of project investment and employment opportunities generated, it is stated.
The United States of America and Japan are the other countries that rank high in joint ventures. Besides these, 9 commercial banks, 3 finance companies and 3 insurance companies are also in operation.
The constitution of the Kingdom of Nepal l990 says that the state shall pursue the policy of attracting foreign investment and technology in the national development effort.
The successive governments formed after the restoration of democracy in Nepal have given high priority to liberalisation policy in order to expedite the process of economic development and the present government is determined to create a positive atmosphere conducive to foreign direct investment here in keeping with that policy, Minister for Industry, Commerce and Supplies Ramkrishna Tamrakar said.
The prospects for foreign direct investment in Nepal have grown with the trade and transit treaty with India and Bangladesh and access to the Tibetan market for products of Nepali origin, he elaborated.
He is of the opinion that the prime concern for Nepal now is how to attract more foreign direct investment to the country.