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  • Foreign Investment in Nepal

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    sayujya Dahal
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    Foreign direct investment in Nepal provides economic benefits like job creation, income growth, and human capital development, but also poses risks such as hindering domestic investment, affecting currency exchange rates, and economic and political instability. Major foreign companies investing in Nepal include Axiata Group, Standard Chartered Bank, KFC, and Coca-Cola, together employing nearly 8,000 workers, over 10% of whom are foreigners. While political instability creates uncertainty, Nepal is still well-positioned to benefit from foreign investment over the next decade if it can address policy issues.

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    Foreign Investment In Nepal

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    Foreign direct investment in Nepal provides economic benefits like job creation, income growth, and human capital development, but also poses risks such as hindering domestic investment, affecting currency exchange rates, and economic and political instability. Major foreign companies investing in Nepal include Axiata Group, Standard Chartered Bank, KFC, and Coca-Cola, together employing nearly 8,000 workers, over 10% of whom are foreigners. While political instability creates uncertainty, Nepal is still well-positioned to benefit from foreign investment over the next decade if it can address policy issues.

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    6 views10 pages

    Foreign Investment in Nepal

    Uploaded by

    sayujya Dahal
    Foreign direct investment in Nepal provides economic benefits like job creation, income growth, and human capital development, but also poses risks such as hindering domestic investment, affecting currency exchange rates, and economic and political instability. Major foreign companies investing in Nepal include Axiata Group, Standard Chartered Bank, KFC, and Coca-Cola, together employing nearly 8,000 workers, over 10% of whom are foreigners. While political instability creates uncertainty, Nepal is still well-positioned to benefit from foreign investment over the next decade if it can address policy issues.

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    © All Rights Reserved
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    of 10

    Impact of Foreign

    Capital On Nepalese
    Economy
    INTRODUCTION
    “
    Foreign Investment in Nepal
    Advantages and disadvantages
    FDI may face while doing business
    in Nepal
    • Economic development stimulation
    • Employment and economic boost
    • Increment in income
    • Development of human capital
    resources.
    • Hindrance to domestic investment
    • Affect currency exchange rate
    • Economic non-viability
    • Risk from political changes
    Axiata Group (Malaysia) Standard Chartered Bank
    (UK)

    KFC (USA) Coca-Cola (India)


    FDI employed altogether 7958 workers, out of
    which 1062 are foreigners while 6896 are
    Nepalese workers.
    • FDI creates employment opportunities, raise the level of domestic wages,
    faster economic growth and improve the distribution of income.
    • The political instability, resultant policy and legal uncertainty do not seem
    to offer a hospitable investment climate to the foreign investors in Nepal.
    • Despite various inter-locked issues, controversies and transitional political
    circumstances, Nepal is well positioned among low-income economies to
    move emphatically on development policy and spending priorities during
    the next decade.

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