1. Background:

The wave of change in the world economic order has affected all nations, big and small. In the process of adjusting the economy in linewith these changes, neighboring countries have also adapted an open and liberal policy for strengthening their economic system. Accordingly, it is necessary for Nepal to introduce timely changes and reforms in various sectors of its economy to introduce dynamism in the process of economic development. In this context, it is opportune for us to make foreign investment attractive by framing a timely, liberal and open policy. The elected government has expressed strong commitment to this goal from the very beginning. Accordingly, this policy document clearly explains the objectives of foreign investment, the forms of such investment, their procedural aspects, the facilities and concessions to be provided to them, the speedy and efficient administrative and
institutional services to be made available through an one window system and such other aspects with the belief that implementation of this policy will lead to the import of capital, modern technology, management, technical skills, acess to international markets, development of competitive attitudes and awareness about increasing
productivity, and their help in the development of an industrial culture in the private sector.