Nepal´s ranking in the global foreign direct investment (FDI) index has improved compared to last year, as the inflow of FDI went up by 10 percent, the World Investment Report 2012 published by the United Nation Conference on Trade and Development (UNCTAD) has revealed.
Nepal currently stands in 175th position out of 182 countries included in the index. The ranking, which is on the basis market attractiveness, availability of low-cost labor and skills, enabling infrastructure, presence of natural resources, was the same in 2007 as well. Nepal had secured 178th position the previous year.
The report published by UNCTAD shows that the FDI inflow increased by 10 percent to US$95 million in 2011. However, the total inflow of FDI in 2011 contributed only 2.5 percent to gross fixed capital formation (GFCF), which is far below the South Asian average of 6.4 percent.
The flow of the amount of total FDI has been continuously increasing since 2006, when the decade long armed conflict ended following the signing of the comprehensive peace accord. The report says, FDI had reached $5.89 million in 2007, up from the negative flow in 2006.
