FDI commitment surges sharply

Kathmandu, Aug. 24: Nepal witnessed a significant surge in foreign direct investment (FDI) commitments in the first month of the current fiscal year 2025/26, with pledges reaching Rs. 24.10 billion.

According to the report of Department of Industry, foreign investors have made their commitment to invest around Rs. 24.10 billion for 127 projects during the first month of the current fiscal year (from July 17, 2025 to August 16, 2025) of the current fiscal year.

The FDI commitment received by the government increased by almost threefold during the first month of the current fiscal year as compared to same period last fiscal year. 

Foreign investors had made their commitment to invest only Rs. 8.55 billion during the first month of last fiscal year 2024/25. 

The government received foreign direct investment (FDI) commitments totaling Rs. 64.96 billion in the last fiscal year 2024/25.

The FDI commitment so far has reached Rs. 675.52 billion from the beginning.

According to the Department, out of total FDI commitment, around Rs. 23.37 billion for 46 projects has been received through the approval route during the review period.

Similarly, Rs. 730 million for 81 industries has been received through the automatic route during the first month of the current fiscal year.

So far, FDI commitment worth Rs. 13.45 billion for 671 industries has come through the automatic route. The government started to approve investment through this method since October 2023.

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

Focus on small-scale industries

Most of the FDI is focused on small industries. A total of 125 small-scale industries have been registered. Only two large industries have been registered while no medium-size industry was registered during the review period. 

Category-wise, most attraction of foreign investment in terms of numbers of industry registration is seen in the information and communication technology sector during the review period. 

A total of 71 industries have been registered in information and communication technology sector. This accounts for 56 per cent share of the total number of industry registration under FDI.  

The second place goes to the tourism sector where 41 industries are registered. This is 32 per cent share of the total number. 

Similarly, eight industries are registered in service, three industries each in manufacturing and agriculture related business.

During the review period, only one industry has been registered in energy sector. No industry was registered in infrastructure and mining sector during the first month of the current fiscal year.

Agro sector leads in investment value

Despite ICT leading in the number of projects, the agriculture sector attracted the highest investment value at Rs. 20.04 billion. The tourism sector followed with Rs. 3.02 billion investment commitment.

Similarly, information and technology sector accounted for Rs. 365 million and service sector Rs. 335 million. 

Manufacturing and energy sector received the lowest commitments, with Rs. 155 million and Rs. 184 million, respectively. FDI approved industries in the first month current fiscal year have made their commitment to provide jobs to 8,268 people. 

During the first month of the current fiscal year, the repatriation amount (royalties and dividends) of the foreign companies invested in Nepal stood at Rs. 2.90 billion.  

The repatriation amount (royalties and dividends) of the foreign companies invested in Nepal was Rs. 64 million during the first month of the last fiscal year.  

In the last fiscal year 2024/25, the repatriation amount (royalties and dividends) of the foreign companies invested in Nepal stood at Rs. 9.61 billion.