KATHMANDU: Nepal recorded foreign direct investment (FDI) commitments totaling Rs 11.12 billion during the first two months of the current fiscal year 2083/84.
According to the Department of Industry, the pledges were made for 328 industrial projects between mid-July and mid-September.
Of the total approved projects, 322 industries worth Rs 9.74 billion were approved through the automatic route, while six industries worth Rs 1.37 billion were cleared through the direct approval route. Monthly data shows that while August saw a higher volume of investment at Rs 6.35 billion, July recorded 192 projects with a total commitment of Rs 4.77 billion.
This year’s initial investment figures mark a significant decline compared to the same period in the previous fiscal year 2082/83, when commitments exceeded Rs 33 billion. The current data indicates a lower level of enthusiasm among foreign investors during the start of the fiscal year.
In terms of sector-wise investment, the tourism industry attracted the highest amount at Rs 3.74 billion, accounting for 34 percent of total pledges. This was followed by the service sector with Rs 3.30 billion, the energy sector with Rs 2 billion, and the manufacturing sector with Rs 1.23 billion. By the number of projects, the information technology sector dominated with 212 registrations.
Foreign investment remains largely concentrated in small-scale industries, with 323 of the 328 registered projects falling into the small category, alongside two medium and three large-scale industries. The department projects that these proposed industries will create 3,447 new jobs once fully operational. Additionally, the department has recommended business visas for 85 foreign investors, 62 representatives, and 86 dependents.
