FDI commitments drop 66.39% in first two months

KATHMANDU: Foreign direct investment (FDI) commitments dropped by 66.39% over the first two months of fiscal year 2026/27 compared to the same period a year earlier.

According to the Department of Industry, Nepal received FDI commitments worth Rs 11.12 billion for 328 projects in the first two months of the current fiscal year. These projects have pledged to create 3,447 new jobs.

Nepal had received FDI commitments of Rs 33.09 billion for 236 projects in the first two months of 2025/26.

Out of the total Rs 11.12 billion committed, 322 projects pledged Rs 9.75 billion through the automatic approval route, while six projects secured commitment for Rs 1.38 billion in foreign capital via the standard approval route.

Furthermore, the DoI approved 12 share purchase or subscription agreements valued at Rs 823.2 million as well as eight technology transfer agreements in the review period.

In the second month of the current fiscal year, Bhadra (mid-August to mid-September), Nepal received FDI commitments worth Rs 6.35 billion for 136 projects. If investment materializes, these projects will create 983 jobs.

Small-scale industries accounted for 323 out of 328 projects approved to bring foreign capital, followed by two medium-scale and three large-scale projects.

In terms of capital allocation, the tourism sector attracted the largest share at Rs 3.74 billion across 70 projects, closely followed by the services sector with Rs 3.31 billion for 26 projects. The energy sector secured FDI commitment of Rs 2 billion for a single project, while the manufacturing sector received FDI commitments of Rs 1.24 billion for 18 projects. Although the ICT sector led in volume, with 212 projects approved, its pledged commitment stood at only Rs 816.92 million. The agriculture and forestry sector received an FDI commitment of Rs 20 million for one project, while the mineral and infrastructure sectors saw no pledged investments.

According to DoI, foreign investors repatriated Rs 622.01 million in royalties and over Rs 23.12 million in service fees over the two months.

Nepal received FDI commitments worth Rs 58.00 billion across 1,116 projects during the fiscal year 2025/26