FDI commitment of Rs. 17 billion in first four months of FY 2024/25

By A Staff Reporter,Kathmandu, Nov.20: Nepal has received the foreign direct investment (FDI) commitments worth Rs. 17.03 billion during the first four months of the current fiscal year 2024/25.

According to the report of Department of Industry, foreign investors have made their commitment to invest around Rs. 17.03 billion for 154 projects during the first four months of the current fiscal year (from July 15 to November 15, 2024) of the current fiscal year.

Along with this, such commitment so far has reached Rs. 528.93 billion from the beginning.

According to the Department, only 23 industries were registered in the month of Kartik (from October 17 to November 15) and investment commitments worth Rs. 1.61 billion was received in this month. 

During the review period of the current fiscal year, FDI commitment worth Rs. 1.62 billion for 109 industries has been received through the automatic route. 

So far, FDI commitment worth Rs. 9.74 billion for 248 industries has come through the automatic route. The government started to approve investment through this method since October last year.

The government of Nepal streamlined the process for approving foreign investments of up to Rs. 500 million through the automatic route.

Meanwhile, most of the FDI is focused on small industries. Only 2 large industries have been registered and one medium size industry in the first four months of the current fiscal year. 

During the first four months of the current fiscal year, 151 small-scale industries have been registered.

Category-wise, most attraction of foreign investment is seen in tourism sector during the review period. 

A total of 113 industries have been registered in tourism sector. This accounts for 72 per cent share of the total number of industry registration under FDI. 

The second place goes to the service sector where 20 industries are registered. This is 13 per cent share of the total number. 

Similarly, 13 industries are registered in manufacturing and seven in information technology sector.

During the review period, only two industries have been registered in agriculture related industries and two have been registered in minerals related industries.

FDI approval industries during the first four months of the current fiscal year have made their commitment to provide jobs to 7,667 people.

By mid-November of the current fiscal year, the repatriation amount (royalties and dividends) of the foreign companies invested in Nepal stood at Rs. 1.41 billion.