Investment PolicyMedium Priority3 years

Reform #15: Attract Quality Foreign Investment with Strong Safeguards

Create clear investment rules that attract quality foreign investment while protecting national interests through transparent screening and community benefit requirements.

The Problem - Detailed Analysis

Nepal loses good investors due to unclear rules and bureaucracy, while lacking safeguards against exploitative investment that doesn't benefit local communities.

Proposed Solutions - Phased Approach
  • 1Create single, clear investment manual with all rules and timelines
  • 2Set up investment screening unit to evaluate projects for national security and community impact
  • 3Require community consent and benefit sharing for resource extraction projects
  • 4Mandate technology transfer commitments for strategic sector investments
  • 5Focus on attracting technology development and value-added manufacturing
Real World Evidence

37 countries maintain strong foreign investment while protecting critical sectors

Singapore combines open markets with strategic screening for quality investment

Canada's investment review process shows how transparent conditional approval works

Implementation Timeline
1

Months 1-3: Set up screening unit and publish investment manual

2

Months 4-6: Create community benefit templates and technology transfer frameworks

3

Year 1: Full screening system operation with first conditional approvals

Performance Targets

50% increase in quality foreign investment within 3 years

100% of strategic investments include technology transfer commitments

75% improvement in investment approval timeline transparency

Zero exploitative resource extraction without community benefits

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Quick Information

Investment Policy

Medium

3 years

#15 of 27

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