FDI commitment hits Rs 65 billion, while received Rs 12 billion

By TRN Online, Kathmandu, Aug 31: A commitment for the foreign direct investment (FDI) accounted for approximately Rs 65 billion in the fiscal year (FY) 2024/25. However, the actual investment received Rs 12 billion.

According to Nepal Rastra Bank (NRB) data, the FDI commitment was Rs 64.9 billion in the last FY; however, only Rs 12 billion was received.

The government’s push through ordinance for the amendment of laws in the last FY has been considered a main cause of the rise in commitment. Meanwhile, the actual amount received via FDI has been relatively lower.

The data showed that the actual amount received through FDI accounted for 18.50 per cent of the total commitment promised in the last FY.

Head of the Foreign Investment and Technology Transfer section of the Department of Industry Prashant Bohora, informed that the amount of FDI received is very low compared to the pledging of commitment. Meanwhile, he said investors are mainly looking towards service and tourism. 

In the FY 2023/24, the commitment for the FDI accounted for approximately Rs 69.8 billion, while the amount received accounted for Rs 8.4 million.

The data showed that in the last FY, the commitment of Rs 46.1 million was accounted through the auto route, and Rs 60.35 billion was accounted through the approval route.  

In the FY 2022/23, the amount of Rs 7.96 billion was received in the commitment of Rs 30.71 billion. The receipts were the highest in proportion in the comparison of the last three consecutive years.

The Department of Industry has nodded the approval for the repatriation of profit of Rs 9.62 billion in the FY 2024/25.

In FY 2023/24, the approval granted for repatriation of profit was Rs 10.18 billion.