Himal Press 
KATHMANDU: Nepal received foreign direct investment (FDI) commitments worth Rs 45.32 billion for 728 projects during the first 10 months of the fiscal year 2025/26.
In the first 10 months of 2024/25, Nepal had received FDI commitments worth Rs 57.06 billion for 576 projects. This means the number of approved projects increased significantly this year, but the overall investment commitment declined by around 20.6% year-on-year.
According to the Department of Industry, investments pledged in the review period of the current fiscal year have pledged to create 23,530 jobs. A lion’s share of FDI commitments is for small-scale projects. Of the total projects receiving FDI, 711 are classified as small-scale, while eight are medium-scale and nine are large-scale.
In Baishakh alone, or mid-April to mid-May, Nepal received FDI commitments worth Rs 3.52 billion for 113 projects. These projects are expected to create 948 jobs. Of the total projects approved during the month, 112 were small-scale projects, and one was a large-scale project.
According to the DoI’s monthly report, the information technology (IT) sector attracted the highest number of FDI projects during the review period. A total of 421 IT-related projects secured commitments worth Rs 1.74 billion between mid-July last year and mid-May this year.
The tourism sector followed, attracting commitments worth Rs 12.54 billion for 189 projects, while the service sector received Rs 4.25 billion for 55 projects.
Similarly, the manufacturing sector secured Rs 2.70 billion in commitments for 42 projects, while the agriculture sector received the largest investment commitment, worth Rs 22 billion, for 16 projects. A major portion of this investment was pledged for a water buffalo farm in Sindhuli by a Chinese firm.
Likewise, two mining projects attracted Rs 115 million in commitments, while two energy projects secured Rs 234.2 million. One infrastructure project received a commitment worth Rs 1.65 billion.
Even though FDI commitments are rising, only about a third of the total commitments are actually realized. According to Nepal Rastra Bank (NRB), only 37.89% of the total FDI pledged over the past decade was realized. Of the total FDI of Rs 395.92 billion received between 2014/15 and 2023/24, only Rs 126.29 billion translated into actual investment.
The DoI also approved share purchase and subscription agreements worth Rs 11.04 billion during the review period.
The report further shows that the department approved the repatriation of Rs 17.79 billion in dividends to foreign investors during the review period, 87.46 percent higher compared to the same period of the previous fiscal year. Likewise, firms with foreign investment repatriated Rs 5.09 billion, $1.17 million, and 349.12 million Indian rupees in royalties during the review period.
