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Although foreign investment commitments are on the rise, actual investment inflows have seen a slowdown in recent years.

According to Nepal Rastra Bank (NRB)—the central monetary authority, net foreign direct investment (FDI) inflow was Rs 19.48bn in 2019/20. Net FDI inflows improved slightly to Rs 19.51bn in 2020/21 when the Covid-19 pandemic was at its peak. However, FDI inflows started to decline in 2021/22. The declines were more severe in fiscal years 2022/23 and 2023/24.

Data provided by the central bank shows FDI inflows dropped to Rs 18.56bn in 2021/22. Such inflows marked a sharp decline to just Rs 6.17bn in 2022/23. Although FDI inflows recovered slightly to Rs 8.4bn 2023/24, it was still 56.87 percent lower compared to 2019/20.

The slowdown in FDI inflow is expected to continue in the current fiscal year as well, as Nepal has received net FDI inflow of Rs 2.71bn only in the first two months of the current fiscal year 2024/25.

While the central bank's FDI inflow figures paint a disappointing picture, investment commitments have been increasing in post-covid years. Nepal received foreign investment commitments of a whopping Rs 61.9bn 2023/24. However, the central bank says that only around 35 percent of investment commitments typically materialize as net investments.

Experts say the government’s loose monetary and fiscal policies created a favorable environment for domestic investment in the post-covid years. This encouraged foreign investors to commit funds to Nepal. However, investors are keeping their investment on hold due to tighter policies in successive years.

The Foreign Investment and Technology Transfer Act, 2019, has laid the ground for foreign individuals, firms, companies, non-resident Nepalis, foreign governments, international institutions, and organized institutions to bring capital, technology and other investments to Nepal.

In 2023/24, only 13.59 percent of foreign investment commitments materialized. According to the Department of Industry (DoI), foreign investment approvals during the year totaled Rs 61.78bn. However, data from the central bank reveals that net foreign direct investment (FDI) inflows stood at just Rs 8.4bn.

The trend of low FDI realization is not new. In 2022/23, net FDI inflows were Rs 6.17bn, representing only 16.06 percent of the Rs 38.4bn in approved foreign investments. Similarly, in 2021/22, Nepal received foreign investment commitments of Rs 54.15bn, but only 34.27 percent, or Rs 18.56bn, turned into actual inflows.

For the current fiscal year, the DoI has received foreign investment commitments worth Rs 18.66bn in the first four months alone. These commitments were made by 263 firms that secured investment approvals during the period.

The Mechi Customs Office has posted a rise of tea export by 69.22 percent in the first quarter of the current fiscal year.

The first four months (Saun-Kartik) witnessed the export of 8062.16 metric tonnes of tea.

Information Officer at the Office, Ganapati Kandel, informed that with the rise of outbound trade, the value of the produce also increased by 67.87 percent.

The export was worth Rs 2.20 billion. It was only Rs 1.31 billion in the corresponding period last year.

However, the Office posted a decline in the export of black cardamom, ginger, amriso, chhurpi, cauliflower, cabbage and broccoli.

Compared to the same period last year, export of black cardamom declined by 11.87 percent, amriso by 11.66 percent, chhurpi by 41.45 percent, and cauliflower, cabbage and broccoli each by 27.98 percent.

However, the plywood export increased by 29.63 percent. The Office collected Rs 4.72 in revenue in the first four months of the current fiscal year.

It is the achievement of 27.22 percent of the total annual revenue target.

With over 12,000 visitors, 100 teams, and 400 participants, the Orbit Engineering Expo was more than a resounding success, a phenomenal moment captured into our minds, two years passed yet the experience is so vivid. This grand event united not only engineering students and professionals but all engineering minds, hearts, and souls in all capacities, breaking boundaries to create a festival dedicated to our shared passion that is Innovation and Creativity at its best. It wasn't just a normal event; rather it was a celebration of engineering in its purest form, a festival that we celebrated with absolute passion, creativity, and dedication. From thrilling and exciting robotics challenges to innovative project demonstrations covering every facet and dimension of engineering and technology, the Orbit Engineering Expo was an attestation to creativity, innovation, and collaboration. Organized by Engineers Vlogs, the expo had highlighted exhilarating competitions like the paper bridge competition, engaging and informative stalls, and even a mesmerizing and unforgettable engineers’ musical night that filled the atmosphere with the harmonious blend of music, creativity, and the rhythm of innovation making everyone whirl and swing mesmerized by the engineering spirit.

Yet, despite its overwhelming success, something was missing…

But what was it?

The first edition of the Orbit Engineering Expo lacked a fixed focus on dedicated events for computer engineering and IT enthusiasts. But this year, we're not just addressing it; we're transforming the experience into something astounding. Orbit Engineering Expo 2.0 promises to be bigger, better, and more inclusive, featuring a vibrant array of 5 plus thrilling events and workshops specially tailored for tech enthusiasts and creative minds in Computer Engineering and IT. From developers to designers to tech speakers, there is something for everyone. From seasoned engineers to curious beginners, there is something for everyone. From young enthusiasts to experienced professionals, there is something for everyone. For everyone who loves technology, there is something for everyone.

Our lineup includes the Code-Decode Challenge, a battle of cleverness and efficiency for coding enthusiasts, the UI/UX Design Competition, where creativity meets functionality solving real life problems and giving them life into functional prototypes, the Tech Debate, unleashing the power of words, technology, and ideas with a pinch of intelligent humor, the Orbit Engineering Hacks, a 48-hour hackathon pushing the limits of innovation, creativity and problem solving, and Project Demonstrations, showcasing breakthrough projects and ideas again solving real life problems. This year, the Orbit Engineering Expo will have something for everyone. From young enthusiasts to seasoned professionals, from students just starting to experts looking to share their knowledge, we are creating a space that transcends skill levels and backgrounds and makes a common space for innovation.

We are making every effort to close the gap between our vision and reality and make sure that nobody is left behind on this innovative and exploratory trip of the engineering world. Come celebrate innovation and creativity with us at Orbit Engineering Expo 2.0, where technology and talent, ideas and execution, and engineers come together!

The author is event coordinator (Computer /IT) at Orbit Engineering Expo 2024

The government has once again failed to accelerate capital spending.

According to the Financial Comptroller General Office, only 9.8 percent of the capital budget allocated for the current fiscal year has been utilized. Out of the Rs 352.35bn allocated for capital expenditure in 2024/25, just Rs 34.53bn was spent in the first four months.

Low capital budget utilization has been a persistent issue in Nepal. In the previous fiscal year (2023/24), the government managed to spend only 63.47 percent of the allocated budget for development projects. Only Rs 191.73bn out of the Rs 302bn set aside was utilized in the review period.

Capital expenditure has consistently slowed since the Covid-19 pandemic. In 2021/22, only 57.23 percent of the development budget was spent. Capital spending improved to 61.44 percent in 2022/23 and 63.47 percent in 2023/24. Over the past four years, the average capital expenditure has hovered around 60 percent. Current spending trends suggest that 2024/25 will follow a similar trajectory.

Before the pandemic, Nepal achieved higher capital spending rates, averaging around 70 percent. Capital expenditure stood at 76.93 percent in 2018/19 and 80.77 percent in 2017/18.

Meanwhile, progress in recurrent expenditure has been satisfactory. The government spent Rs 292.52bn, or 25.65 percent of the Rs 1,140bn allocated for recurrent expenditure, in the first four months of 2024/25.

Overall, of the Rs 1,860.3bn allocated for the current fiscal year, Rs 415.02bn, or 22.21 percent of the allocation, has been spent so far. Similarly, out of Rs 367.28bn allocated for financial management, Rs 87.96bn has been utilized.

Revenue mobilization has remained another pressing issue for Nepal over the past few years. The government raised Rs 329.01bn in the first four months of 2024/25. The collection is 22.36 percent of the Rs 1,471.62bn that the government has targeted to raise in the current fiscal year. This indicates that Nepal is likely to miss its revenue targets once again.

In 2023/24, revenue collections, including amounts to be transferred to provincial and local governments, reached only Rs 1,058.89bn, falling short of the Rs 1,422.54bn target by 25.56 percent, or Rs 363.64bn. The shortfall in 2022/23 was even higher at 31.77 percent.

Foreign aid mobilization has shown no progress this fiscal year. The government has set a target to raise Rs 52.32bn through foreign aid and grants in the current fiscal year but has not secured any funds so far, according to the FCGO.