FDI commitments double in four months

By A Staff Reporter,Kathmandu, Nov. 30: Nepal received foreign direct investment (FDI) commitments worth almost Rs. 37 billion during the first four months of the current fiscal year 2025/26. According to a report by the Department of Industry, foreign investors committed Rs. 36.68 billion for 382 projects between mid-July and mid-November 2025.

With this, total FDI commitments since the early 1980s have reached Rs. 686.05 billion. FDI commitments nearly doubled in the first four months of the current fiscal year compared to the same period last fiscal year. 

Foreign investors had committed only Rs. 18.65 billion during the first four months of fiscal year 2024/25.

In the last fiscal year 2024/25, the government received total FDI commitments of Rs. 64.96 billion.

According to the Department, out of the total FDI commitments, around Rs. 34.31 billion for 131 projects was received through the approval route during the review period.

Similarly, Rs. 2.36 billion for 251 industries was received through the automatic route in the first four months of the current fiscal year.

So far, FDI commitments worth Rs. 13.49 billion for 842 industries have come through the automatic route. 

The government began approving investments through this method in October 2023. Nepal has 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 commitments are focused on small industries. Of the 382 industries registered, 369 are small-scale. Only seven large industries and six medium-sized industries were registered during the review period. 

By category, the largest number of industry registrations was in the information and communication technology (ICT) sector.  A total of 205 industries were registered under ICT, accounting for 55 per cent of the total industries registration. The tourism sector ranked second with 118 industries, making up 31 per cent of total registrations.

Similarly, 23 industries were registered in the service sector, 21 in manufacturing, and 13 in agriculture.

During the review period, only one industry each was registered in the energy and mineral sectors, while no industries were registered in the infrastructure sector.

Agro sector leads with 60% investment share

Although the ICT sector led in the number of projects, the agriculture sector attracted the highest investment bolume, with commitments amounting to Rs. 21.88 billion. The share of investment commitment in the agriculture sector stood at 60 per cent. 

The tourism sector followed with Rs. 8.94 billion in investment commitments. 

The service sector accounted for Rs. 3.09 billion, while the manufacturing sector received Rs. 1.65 billion. The ICT sector, with 205 projects, received commitments only worth Rs. 874 million. 

The energy and mineral sectors received the lowest commitments, with Rs. 184 million and Rs. 45 million, respectively. Industries approved for FDI in the first four months of the current fiscal year have committed to providing jobs to 33,814 people.

During the same period, the repatriation amount (royalties and dividends) by foreign companies invested in Nepal stood at Rs. 2.90 billion.

This was significantly higher than the Rs. 67 million repatriated during the first four months of the last fiscal year 2024/25.

In the last fiscal year 2024/25, total repatriation by foreign companies amounted to Rs. 9.61 billion.