Investment Board Approves Rs 171.65 Billion for 55 Large Projects, Energy Sector Dominates

The Investment Board Nepal (IBN) has approved investments worth Rs 171.65 billion for 55 large-scale projects as of December 31, 2025. In dollar terms, the approved amount stands at approximately USD 11.92 billion. The data highlights a strong concentration of investment in priority sectors, particularly energy, reflecting Nepal’s strategic focus on long-term infrastructure and power development.

According to IBN, the energy sector accounts for the largest share of approved investments. A total of 40 energy-related projects have received approval, amounting to Rs 133.71 billion, or around USD 9.28 billion. This dominance indicates continued investor confidence in Nepal’s hydropower and renewable energy potential, which remains central to the country’s economic and export ambitions.

Manufacturing is the second-largest recipient of approved investment. The board has cleared nine manufacturing projects with a combined investment of Rs 23.69 billion. Analysts note that while manufacturing investment is growing, it remains significantly lower than energy, suggesting that Nepal’s industrial diversification is still in a gradual phase.

Other sectors have received comparatively smaller but strategically important investments. One infrastructure project has been approved with an investment of Rs 6.49 billion, while two tourism projects account for Rs 7.16 billion. Additionally, three utility-sector projects have been approved with a combined investment of Rs 5.91 billion. These figures suggest a selective but targeted approach to non-energy sectors.

IBN has identified energy, agriculture, health, information and communication technology, manufacturing, transport, urban infrastructure, tourism, and mining as priority investment sectors. Within energy, hydropower, solar power, transmission lines, and distribution systems have been prioritized. In agriculture, the focus is on integrated agro-processing, agricultural machinery, and organic fertilizer production, reflecting a shift toward value-added and technology-driven farming.

The transport sector has also been identified as a key area for future investment. Priority projects include expressways, railways, cable cars, tunnels, airports, and logistics hubs. In tourism, the board is promoting hotels, resorts, integrated tourism zones, and destination development, aiming to strengthen Nepal’s position as a high-value tourism destination rather than a low-cost one.

To facilitate investment, IBN has been operating under several legal frameworks, including the Public–Private Partnership and Investment Act 2019, the Foreign Investment and Technology Transfer Act 2019, the Industrial Enterprises Act 2020, and the Special Economic Zone Act 2016. Supporting policies such as the Foreign Investment Policy 2014, Industrial Policy 2010, and Trade Logistics Policy 2022 are also in force, providing regulatory clarity for investors.

Established in 2011, the Investment Board Nepal is a high-level body chaired by the Prime Minister. It holds the authority to approve and implement public–private partnership projects worth more than Rs 6 billion, as well as energy projects exceeding 200 megawatts. This mandate positions the board as a central institution in shaping Nepal’s large-scale investment landscape.

IBN’s long-term vision is to attract both domestic and foreign investment into priority sectors to support Nepal’s socio-economic transformation. Through private-sector participation, the board aims to expand infrastructure and service-sector investments, contributing to employment generation, productivity growth, and economic resilience.

Economic Diplomacy Contact Person Appointed

In a move to strengthen investment promotion through economic diplomacy, IBN has designated Undersecretary Manoj Regmi as its economic diplomacy contact person. According to Joint Secretary Hemraj Tamang, the contact person will coordinate with the Ministry of Foreign Affairs and Nepali diplomatic missions abroad to facilitate and promote investment in Nepal.

The role will include providing information to the international community, coordinating communication with potential investors, and helping resolve investment-related issues. The appointment follows feedback from Nepali diplomatic missions, which had earlier suggested that a dedicated contact person would make investment promotion more effective and responsive.

IBN has formally informed the Ministry of Foreign Affairs about the appointment. Observers believe that institutionalizing economic diplomacy in this manner could improve coordination between domestic investment agencies and Nepal’s diplomatic network, potentially translating approved investments into faster project implementation.