FDI Commitment of NPR 13 Billion in the First Two Months of the Current Fiscal Year

In the first two months (Shrawan and Bhadra) of the current fiscal year 2081/82, Nepal received commitments for direct foreign investment (FDI) amounting to approximately NPR 13 billion. According to statistics released by the Department of Industry, the total FDI commitment during this period reached NPR 12.98 billion, which is 11.20% lower than the NPR 14.62 billion committed during the same period last fiscal year.

Focus on Small Industries:

• The majority of foreign investment commitments have been directed towards small industries. A total of 95 small industries were registered during the two-month period, while only 2 large-scale industries received investment commitments. No medium-scale industries were registered.

Sector-wise Investment:

• Tourism Sector: The tourism sector attracted the highest commitment, with 71 industries registered, accounting for 73% of the total commitments.

• Service Sector: The service sector saw 15 industries registered, representing 16% of the total commitments.

• Manufacturing Sector: 6 industries were registered in the manufacturing sector.

• Information Technology: 3 industries were registered in the IT sector.

• Agriculture Sector: 2 industries were registered in the agriculture sector.

Decrease Compared to Last Year:

• In the previous fiscal year, total FDI commitments amounted to NPR 54.87 billion, of which only NPR 8.46 billion was realized.

• This year, commitments in Shrawan amounted to NPR 9.15 billion, while Bhadra saw NPR 3.83 billion, both of which are slightly lower compared to the same months last year.

Although the FDI commitments have slightly decreased compared to the previous year, the government of Nepal has adopted flexible policies to attract and increase the flow of FDI. It is expected that these commitments will be converted into actual investments in the coming months.