Kathmandu, May 30 (IANS): The Nepal government announced that it would reduce by 60 per cent the minimum amount for foreigners to invest in the Himalayan nation.

Presenting the annual budget for the 2022-23 fiscal year that begins in mid-July to the House of Representatives, Finance Minister Janardan Sharma said the minimum threshold for foreign direct investment (FDI) will be brought down to 20 million NPR ($160,760) from the existing 50 million MPR, reports Xinhua news agency

He noted that the move aimed to attract more FDI to the country.

In May 2019, the government increased the threshold by 10 times from 5 million MPR on the grounds that the concentration of foreign investments in small businesses was affecting those in Nepal.

Pashupati Murarka, former president of the Federation of Nepalese Chambers of Commerce and Industry, told Xinhua that the government's move could help attract more foreign investments in the country, even in small- and medium-sized enterprises.