Promises versus reality: The discrepancy in Nepal’s investment summits

Nepal's journey to attract foreign investment has been a tale of grand pronouncements versus stark realities. Since 2017, the nation has hosted at least six major investment summits, each heralded with fanfare and promising billions in commitments. Yet, the critical question remains: where is the money? The overwhelming consensus, echoed by data from Nepal Rastra Bank and the World Bank, is that only a sliver of these pledges ever translates into tangible economic activity. The gap between what is promised in the gilded halls of conferences and what is actually built on the ground is the true measure of Nepal's investment climate, a metric that consistently falls short.

The World Bank's Business Ready Profile paints a grim picture, scoring Nepal poorly on crucial indicators like regulatory framework, public services, and operational efficiency. While peer economies that successfully attract sustained FDI typically score much higher, Nepal struggles to implement fundamental reforms. The investment approval process itself is a labyrinth of separate offices, each operating in silos with no shared timelines or coordination. Company registration, tax registration, environmental clearances, land acquisition, and foreign exchange approvals can take months, with identical documents often requested multiple times and approvals vanishing without explanation. This systemic inefficiency, rather than a lack of investor interest, is the primary deterrent.

While the government has made genuine efforts, such as reducing the minimum investment threshold and introducing one-day approvals for certain investments, these legislative gains have yet to significantly alter the operational environment. The core problem lies in the implementation capacity and inter-agency coordination. Currently, no single institution possesses the authority to enforce deadlines across the entire approval chain. This regulatory uncertainty creates open-ended risks for investors, particularly for infrastructure funds and development finance institutions, making Nepal an unattractive destination despite its potential. The focus must shift from summit rhetoric to robust, coordinated execution to bridge the chasm between promise and reality.