Kathmandu, July 26 -- Foreign direct investment (FDI) commitments to Nepal grew by a modest 5 percent in the last fiscal year that ended in mid-July. Experts attribute this slow pace to legal and procedural challenges despite some policy reforms.

According to the Department of Industry, Nepal received FDI commitments worth Rs64.96 billion for 840 projects in the review period.

"FDI has grown slightly due to liberal policies and amendments to legal provisions. The flow is expected to improve this fiscal year despite global uncertainty, as Nepal receives most of its FDI from China and India," said Prakash Kumar Shrestha, a member of the National Planning Commission.

China and India continue to be Nepal's major sources of foreign investme...