Context:
The Government of Nepal (GoN) aspires to reach middle income economy status by 2030 and Nepal’s graduation from "Least Developed Countries" status has been set for 2026. Nepal is preparing for this upward movement and the National Planning Commission (NPC) has carefully devised a transition strategy. The TIP-Investment Support Facility (ISF) commenced against the backdrop of Nepal’s trade and investment suffering from the disruption of COVID-19. This provided a unique opportunity for the GoN to rethink strategies, align policies and explore areas such as gender inclusivity that had not been considered earlier.
ISF’s Objectives:
An improved investment climate for attracting FDI.
Improved trade and investment coordination between country partners and development partners.
Approach:
The proposed approach for the implementation of the ISF is holistic and sector-wide. All relevant stakeholders will get involved in an inclusive and far-reaching approach, encompassing planning and implementation in the capital and at sub-national level. This shall enable Nepal to attract higher volumes of foreign direct investment and create a more business-friendly environment.
Services:
R1: Identify procedural and regulatory obstacles for foreign investment.
R2: Improve the capacity of the GoN/MOICS to attract foreign investment.
R3: Support the GoNl/MOICS in drafting an Integrated Trade and Investment sector strategy through policy dialogue.
R4: Strengthen information sharing and coordination on trade and investment, and involve provincial and local governments in promotion activities.
Result areas:
R1: Identify regulatory obstacles to foreign investment and propose solutions.
R2: Improve the government’s capacity to attract FDI through a single-entry window OSSC at the Department of Industry (DOI).
R3: Support trade, industry and investment policies, including the NTIS.
R4: Strengthen information sharing and coordination in trade and investment by involving provincial and local governments.