GDP by Industry (%), Nepal, 2017–2018 Source: Nepal's Macro Environment and Key Industry Prospects, 2017–2022 Foreign Direct Investment The Government of Nepal has taken several steps in recent years to encourage foreign direct investment (FDI) in the country. It issued the new Foreign Investment and One-Window Policy 2015, replacing the Foreign Investment and One-Window Policy 1992, and organized the Nepal Investment Summit 2017 with the objective of attracting FDI. Source: Nepal Rastra Bank As a result of these efforts, FDI in Nepal grew by an astounding 128% to reach NPR 13.5 billion in 2017. 5 However, Nepal has not been able to harness the full potential of FDI investments with net FDI contribution at only 0.8% of GDP.6 To optimize FDI investments, the Government of Nepal should continue its efforts to attract foreign investors to bridge funding gaps in targeted sectors, and enable technology transfer and sharing of best practices from other economies. 5 6 Nepal Rastra Bank World Bank 9

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