Pledged Chinese investment in Nepal surges in 2 months of new fiscal year

KATHMANDU, Sept. 16 (Xinhua) -- Chinese investors had pledged direct investment worth 11.15 billion Nepali rupees (94.65 million U.S. dollars) in Nepal during the first two months of the 2021-22 fiscal year starting in mid-July, about half of the total committed during the whole 2020-21 fiscal year, the latest figures from the Department of Industry showed.

According to the department, Chinese investors registered a total of 62 enterprises from mid-July to mid-September, and the amount of investment pledged is about half of the 22.5 billion rupees (190.87 million dollars) committed by the Chinese investors during the entire 2020-21 fiscal year.

During the first two months of last fiscal year, Chinese investors committed 7.4 billion rupees (62.77 million dollars) in foreign direct investment (FDI) in Nepal.

Jiblal Bhusal, director general at the department, told Xinhua that the agency had approved many pending investment proposals from the Chinese side in the last two months as the restrictive measures imposed to contain the COVID-19 pandemic were eased gradually, and the lockdown was lifted in the Kathmandu Valley early this month.

"China has emerged as the largest FDI contributor to Nepal in recent years, which has also been reflected in the approved FDI amount in the last two months," said Bhusal.

The amount pledged by Chinese investors during the first two months of the current fiscal year accounted for 95 percent of the total commitments made to Nepal by foreign investors, according to the department.

China had been topping the chart in terms of FDI pledges to Nepal for six years in a row till last fiscal year, the department noted.

Among the 62 enterprises registered by the Chinese investors, 26 are related to hotels and restaurants, while the others cover cargo handling, electronic equipment maintenance, mask manufacturing, construction, slaughter house, software development, packaged drinking water production, ready-made garment and assembly of electric vehicles, among others.