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Foreign Direct Investment (FDI) plays a vital role in supporting economic growth for developing countries. For Nepal, which faces challenges such as limited domestic capital, infrastructure deficits and a narrow industrial base, FDI is particularly important. This essay outlines the significance of FDI in Nepal’s economic landscape, discusses the major obstacles Nepal faces in attracting foreign investment, presents relevant data trends and explores future opportunities along with policy suggestions to enhance Nepal’s economic progress through FDI.

Importance of FDI

Nepal’s economy is largely dependent on agriculture, which employs a majority of the population but contributes a smaller share to the GDP. The manufacturing and service sectors are still emerging, and domestic investment is insufficient to meet the country’s development needs. Consequently, foreign investment becomes a key source of capital infusion. FDI not only provides financial resources but also introduces modern technologies, expertise and access to international markets.

Through foreign investment, Nepal can improve productivity, diversify its economy and create jobs. Moreover, FDI helps alleviate foreign currency shortages by increasing exports and generating revenues, which are critical for sustaining economic growth. Hydropower, tourism, telecommunications, manufacturing and financial services are among the sectors receiving the most attention from foreign investors.

FDI trends: An overview 

FDI inflows into Nepal have remained relatively modest but stable in recent years. According to official data from Nepal Rastra Bank, FDI inflows hovered around $170m in 2018-19 and increased slightly to $182m in 2019-20. The pandemic caused a drop in 2020-21, with inflows declining to about $145m. Recovery signs appeared in 2021-22, with $160m, and early estimates for 2022-23 indicate a further rise to nearly $175m.

Cumulatively, the stock of foreign direct investment in Nepal is estimated between $1.2bn and $1.5bn. When compared to regional neighbors like India, Bangladesh and Sri Lanka, Nepal’s ratio of FDI to GDP is relatively low at around 0.44 percent, highlighting ample scope for improvement.

Hydropower projects dominate FDI inflows, making up approximately 40-45 percent due to Nepal’s large but underutilized potential in electricity generation. Telecommunications is the next largest sector, accounting for about 20 percent of FDI. Other sectors like manufacturing, tourism and banking attract smaller but significant shares, contributing to gradual economic diversification.

Challenges hindering FDI growth

Nepal faces several structural and institutional challenges that restrict its ability to attract and effectively utilize FDI:

• Political uncertainty: Frequent changes in government and inconsistent policies discourage long-term investments. Investors generally prefer stable environments where regulations are predictable and enforced.
• Inadequate infra: Poor road conditions, unreliable electricity supply and inadequate logistics infrastructure increase the operational costs for investors, reducing Nepal’s competitiveness compared to neighboring countries.
• Complex bureaucracy and regulatory barriers: Lengthy approval processes, lack of transparency and corruption add to the cost and time needed to establish and operate foreign businesses.
• Land acquisition and social resistance: Unclear land titles and local opposition often lead to project delays or cancellations, increasing uncertainty and risks for investors.
• Small domestic market: Nepal’s limited population size and low purchasing power restrict the market for products and services, compelling foreign firms to focus on exports, which face their own logistical hurdles.
• External shocks: Global events like the Covid-19 pandemic have disrupted global supply chains and dampened investor confidence, impacting FDI inflows.

Opportunities for boosting FDI

Despite the difficulties, Nepal has unique advantages and opportunities that can help attract more foreign investment:

• Hydropower development: Hydropower offers one of the most promising sectors for long-term foreign investment, both to meet domestic needs and to export electricity regionally.
• Tourism sector: Nepal’s diverse landscapes, cultural heritage and adventure tourism attract visitors worldwide. Investment in tourism infrastructure can stimulate FDI and create employment opportunities.
• Strategic location: Nepal’s position between India and China presents a potential hub for regional trade and manufacturing, especially if transport and border infrastructure are improved.
• Government reforms: Legislative measures like the Foreign Investment and Technology Transfer Act and the establishment of Special Economic Zones (SEZs) offer tax incentives and easier investment procedures.
• Public-private partnerships: PPP arrangements can mobilize foreign capital and expertise for infrastructure and social sector projects, sharing risks and benefits.

Maximizing benefits

To harness the full potential of FDI, Nepal should prioritize the following policy actions:

• Political and economic stability: Establishing a stable, transparent policy framework supported by all political parties is essential to build investor confidence.
• Investment in infra: Upgrading transport, power, digital connectivity and logistics infrastructure will reduce costs and improve Nepal’s attractiveness.
• Regulatory simplification: Streamlining administrative procedures through digital platforms, one-stop service centers and anti-corruption measures will ease the investment process.
• Land acquisition and community engagement: Developing clear and fair land policies and actively involving local communities will reduce conflicts and delays.
• Human capital development: Enhancing vocational education and training to match investor needs will improve labor productivity and attract higher-value investments.
• Sustainable investment practices: Aligning FDI with environmental protection and social inclusion will ensure long-term development benefits and community support.

In summary, FDI represents a vital source of capital, technology and innovation for Nepal’s economic development. While political instability, infrastructure gaps, regulatory hurdles and social challenges have limited Nepal’s ability to attract and fully utilize FDI, the country’s abundant natural resources and strategic location offer significant opportunities. By adopting consistent policies, investing in infrastructure, simplifying regulations and addressing social concerns, Nepal can create a conducive environment that encourages foreign investment. Such efforts will be critical to leveraging FDI as a driver of sustainable and inclusive growth, improving livelihoods and transforming Nepal’s economy over the coming decades.

Heavy rains in the evenings and intense heat in the daytime are exacerbating the risk of dengue, malaria and other vector-borne diseases across the country.

With more rainfall predicted this monsoon compared to preceding seasons, health authorities are urging the public to take preventive measures to avoid potential outbreaks.

Data from the World Health Organization show that dengue—an illness transmitted through the bite of the Aedes aegypti mosquito infected with dengue virus (DENV)—afflicts 100m-400m people around the world every year.

According to government statistics, Nepal saw one of its worst dengue outbreaks in history, with 52,557 confirmed cases and 60 deaths, in 2022. While the numbers dropped in 2024, the Epidemiology and Disease Control Division (EDCD) reported 34,385 cases and 13 deaths, affecting 76 districts across the country. 

Aware of a serious threat to public health arising from the vector-borne disease, the government has already implemented a regular surveillance and monitoring system through an early warning and reporting mechanism.

At the same time, it has strengthened integrated vector management strategies for mosquito surveillance with the objective of controlling vectors that transmit diseases like malaria, dengue and zika. These strategies combine various control methods, including biological, chemical, environmental and public health education, to optimize resource use and achieve sustainable vector control.

The EDCD has projected that more than 60,000 people could contract dengue across the country this year, and prepared an action plan to mitigate possible outbreaks.

The EDCD’s estimate is based on past trends, climatic conditions and the early onset of cases this year. The division is currently coordinating with local governments and health institutions to strengthen surveillance, awareness campaigns and vector control measures.

Authorities are urging the public to remain vigilant and take preventive measures, such as eliminating mosquito breeding sites and using protective clothing as well as repellents.

Minister for Health and Population Pradip Paudel has recommended halting construction works for four months—from July to October—to control dengue and save lives. 

Minister Paudel also emphasized the importance of a cleanliness campaign to eliminate mosquito breeding grounds and asked all to join it. He stated that raising awareness is key to preventing the spread of dengue. “It is essential to inform the public and work together,” he said. Minister Paudel urged everyone to keep their surroundings free of dengue larvae to protect themselves and others. He also asked citizens to take part in regular sanitation efforts every Friday, from July to October.

Dr Anup Subedee, an infectious disease specialist, emphasized the importance of raising awareness to prevent the spread of dengue. “While awareness programs are going on, the government, local authorities and communities must work together to make them effective,” he said: In particular, the government must remain vigilant, as we expect a rise in dengue cases this season.

Dr Subedee warned that the current period is a transitional phase, with changing weather and noticeable climate shifts. “The peak season for the spread of dengue has not arrived yet. When it arrives, we fear that more people will suffer—possibly for a prolonged period because of the climatic shift,” he added.

Using bed nets, applying mosquito repellent creams for short-term protection, keeping the surroundings clean and removing stagnant water are some of the effective ways to reduce the risk of dengue and other mosquito-borne diseases.

Dr Subedee noted that dengue can come with a variety of symptoms. “Not all cases require hospital visits. For minor symptoms like headaches and body aches, people don’t need to visit hospitals. They can take care of their health at home by taking paracetamol and staying well-hydrated with fluids such as pulses, soup, juice and other liquids,” he said.

Dr Subedee added, “Some cases require medical attention. If someone experiences persistent fever and severe body pain for more than 3-4 days, they should visit a hospital as soon as possible and consult a doctor. In more serious cases, dengue can affect internal organs such as the lungs and pancreas.”

Though rare, severe dengue can lead to serious complications such as acute pancreatitis and acute respiratory distress syndrome (ARDS), affecting the pancreas and lungs. These conditions may result from direct viral damage, immune responses or plasma leakage. Symptoms like abdominal pain and fever can delay diagnosis, and even if fever subsides, dengue should still be suspected in patients showing other symptoms associated with the disease. In severe cases, especially dengue hemorrhagic fever, organ damage and respiratory failure may occur, emphasizing the need for early recognition and medical attention.

Dengue rapid test kits available at government health institutions can help with timely diagnosis that is so crucial in saving lives. Furthermore, the EDCD has approved and published a comprehensive dengue prevention and control action plan on the occasion of World Neglected Tropical Diseases Day 2025.

With the rise of dengue patients in the hospital, labs and most hospitals take this as an opportunity to take benefit from the citizens. Addressing the issue, Minister Paudel stated, “We will try to make dengue testing free and if that’s not possible, we will set a fixed rate. He warned against fleecing the poor and suffering people in the name of testing.

Minister Paudel admitted that the government needs to do more on the dengue control front, adding that it is preparing to collaborate with the media for disseminating relevant information among the public.

Heart Lamp, a collection of short stories by Banu Mushtaq, caught my attention after winning the International Booker Prize in 2025. I acquired a copy—the English translation by Deepa Bhasti—soon after its release in Kathmandu.

As I delved into Mushtaq’s fictional world, I noticed that all the stories feature female protagonists. Though these women are often portrayed as helpless, submissive, and vulnerable, the author skillfully critiques patriarchy, leaving readers to question whether men truly embody only freedom, assertiveness, and power. The stories also serve as a representation of Southern Indian society at the time, exposing its structures, the struggles of Muslim women, and the hollowness of male pride. For instance, in ‘Stone Slabs for Shaista Mahal’, the husband’s performative love—comparing himself to Shah Jahan—is starkly contrasted by his swift remarriage after his wife’s death rituals conclude.

The narratives mock male chauvinism while celebrating feminine resilience. In one story, a mutawalli (custodian) obsesses over a community member’s burial rites and religious formalities, yet remains indifferent to his own son, who lies critically ill in the hospital. This effectively highlights how men often prioritize superficial duties over genuine responsibilities.

The collection also offers insights into Muslim customs, such as khatna (male circumcision), depicted as both a celebrated ritual and, disturbingly, a means for the poor to earn meager rewards through repeated procedures. Similarly, the titular story, ‘Heart Lamp’, portrays a mother’s quiet strength as she resists self-immolation for her children’s sake. Through these intimate family sagas, Mushtaq lays bare the cruelties of patriarchy—its injustices, traumas, and the suffocating burdens of shame and oppression forced upon women.

Heart Lamp immerses readers in the social dynamics of South Indian Muslim communities, revealing how gender roles shape lives both inside and outside the home. The book also holds academic value, offering rich material for sociological and anthropological studies of the region’s cultural practices.

“If you don’t have something nice to say, don’t say anything at all”—this is one of my mother’s favorite quotes and she tries really hard to live by it. I, on the other hand, always thought being nice was overrated, that it put you at a disadvantage by making you vulnerable to people’s various antics. 

Chimamanda Ngozi Adichie, Nigerian writer famous for her novel ‘Purple Hibiscus’, in a talk says being nice means always wanting to be liked. It means silencing inconvenient truths, choosing always to be comfortable, and letting go of courage. It means talking about peace but not about justice. The more I think about it, the more it rings true. Nice people don’t like to rock the boat. They don’t speak up because they don’t want to be seen as ‘difficult’ or go against other’s opinions. Nice people live in cocoons they have created for themselves. 

I sometimes think my mother suffers because of her ‘niceness’. She doesn’t like conflicts and getting into arguments so she will often stay quiet when she doesn’t agree with people. But she will be haunted by what so and so said during dinner or what her sister did during a trip for many days after the incident. She often gets taken for granted by relatives and friends because she is ‘a nice person’ who will do as they want without considering her own needs. 

Having grown up sensing and seeing a pattern where my parent’s niceness empowered those around them in all the wrong ways, I have been petrified of being nice and coming across as someone who will go with the flow without letting my needs and preferences come in people’s way. I always speak my mind and tailor my responses according to what’s coming my way. I’m definitely not the one to ‘let things go’ when people inevitably say weird or hurtful things. I would rather have said things out loud than kept them in. It’s been my guiding mantra in life. 

But recently, I’ve started thinking that I must not confuse being nice with being kind and that these two things are entirely different things and mutually exclusive too. You don’t have to be nice but you must always be kind. By that I mean your intentions should be in the right place. Must I hurt someone to get my point across even when the other person isn’t being reasonable or particularly ‘nice’? Can’t I say the same thing in a softer tone rather than using harsh words? And can’t I always choose to look at the positive side of things instead of pointing out the negatives in any given situation? 

Everyone learns from experience and I had to go through an anxious phase to introspect and come to the conclusion that it’s always best to say something positive and be kind rather freely speak your mind just because you can or because you want to give an aura of someone who is strong, bold, and courageous. 

I have a relative (she’s the wife of a cousin I’m super close to) who never has anything nice or positive to say. Even when I am feeling good and confident about things, the things she says (masked as concern) will sow doubt in my mind. In all the years I’ve known her, I’ve never heard her say anything remotely nice to people. She doesn’t compliment anyone. She doesn’t reassure those who are worried. She is quick to point out what’s wrong and why and how things could get worse during any kind of family discussion. And her words are often final. Any reasoning is met with further explanations on why it is wrong. 

I would always give her the benefit of doubt whenever other relatives complained about her. I thought it was my moral duty towards my cousin whom I’ve grown up with. You don’t speak ill about the wife when you are close to her husband and you value the relationship. But in the past few months I have come to understand what people mean and why many have chosen to stay away from her. 

I have been going through a health issue and despite recovering really well, I’ve been anxious about blood tests and ultrasounds. I’m generally not someone who worries a lot and my intuition is quite strong. But by constantly telling me what could go wrong and sharing horror stories she’s heard, she made my recovery journey an ordeal. Despite feeling well and knowing in my heart that everything is fine, I have put off simple tests and woken up at night drenched in sweat because of nightmares where everything bad she’s warned me about had come true. 

At one point, she had me convinced that I had diabetes or would develop complications from the same because ‘a friend of hers whose case was similar to mine had had diabetes too’. Even when I told her that there weren’t any symptoms of it, she maintained that it was only a matter of time. I had laughed it off initially and even wondered how someone could be so negative but I didn’t realize the impact her words would have on me on a subconscious level till I put off a crucial test for almost a month. When the results of the test came back normal, I berated myself for having stressed about it for so long. 

This was when I realized the impact your words have on others, which is why you should choose them with care. Why would you want to be the reason for someone’s anguish? Niceness and kindness are two entirely different things and while it’s okay to not be a nice person, it’s important to be a kind person because it’s more about who you are than what others think of you.