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The government showcased different projects with a target of attracting investment commitments of over Rs 600bn during the third Nepal Investment Summit held in Kathmandu on 28-29 April 2024. However, most of the projects showcased during the event failed to attract serious interest from investors.

One year on, the Office of the Investment Board Nepal (OIBN) has admitted that foreign investor response has fallen short of expectations. “Although many projects were showcased during the summit, investor interest has not materialized as anticipated,” said Pradyumna Prasad Upadhyaya, the spokesperson for the OIBN. He, however, added that overall sentiment toward investing in Nepal remains positive. OIBN is the specialized government body to handle projects above Rs 6bn and hydropower projects exceeding 200 MW. 

Nepal first organized the investment summit in 2015, primarily to support post-earthquake reconstruction. The first summit generated commitments of around Rs 1.4trn whereas the second investment summit held in 2019 saw investment pledges worth Rs 3.2trn.

Investors from China, India express interest

Neighboring countries China and India have shown willingness to invest in select projects. Chinese investors are close to signing a Project Development Agreement (PDA) for the Damak Clean Industrial Park. They have also shown interest in the Panchkhal Special Economic Zone (SEZ) in Kavre and submitted a proposal to start a processing zone in Nuwakot. Meanwhile, Indian investors have proposed establishing an edible oil company in Janakpur and submitted proposals for IT parks around Chobhar, Khumaltar and Nuwakot, along with a solar energy project.

The Muktinath Cable Car, spanning roughly 81 km from Birethanti on the Kaski–Parbat area to Muktinath Temple of Mustang is also moving forward. The project is currently in the environment impact study phase with the Detailed Project Report finalized.
Other progressing projects include the long-stalled West Seti Hydropower Project and the SR6 hydropower project, which is close to the final DPR submission stage. The OIBN has also received a proposal for a fertilizer plant in Bardaghat that will consume 300 MW.
Upadhyaya said they have received proposals for unique projects like seabed mining. Korea’s railway company, KORAIL, has shown intent to invest in Nepal’s railway sector. “Though exact figures on the investments received are not available, many project negotiations have made significant progress,” he added. Former OIBN CEO Sushil Bhatta, who led the Board during the third summit, explained that large investments often begin with expressions of interest and take time to materialize. “Rather than asking how much investment has come, we need to evaluate how projects are progressing,” he said.

FDI inflow of Rs 141bn

Since the third Nepal Investment Summit, Nepal has attracted Rs 141.14bn in foreign direct investment (FDI). However, this inflow is not directly tied to projects showcased at the third summit. Most investments are in projects under the Rs 6bn threshold. Before the summit, the government amended several investment-related acts via ordinance. 

The private sector had previously identified 52 acts and regulations as barriers. Although most of these legislations were revised, lack of accompanying procedures and guidelines has slowed progress in implementation. “Investors frequently ask us why procedures and directives have not followed legal amendments,” said a senior official from the Ministry of Industry, attributing delays to poor coordination among government agencies.
Upadhyaya said while drafts of some working procedures are in progress, the OIBN’s limited autonomy, having to rely on the Prime Minister’s Office for decisions, has complicated matters. “Policies evaluated by the OIBN are often misunderstood or delayed by other agencies,” he said.
Former OIBN CEO Bhatta said that procedural, legal and institutional reforms must be followed by behavioral reforms to ensure smoother project transitions. “Our credibility will be enhanced if projects in the pipeline goes into implementation as per the set timelines,” Bhatta said. “We also need to learn from international experiences on these aspects.”

Will graylisting affect FDI?

Nepal was recently placed back on the Financial Action Task Force (FATF) “gray list” for deficiencies in curbing money laundering and terrorist financing. Though this does not block investment outright, it can raise doubts among investors. “Nepal needs to address these concerns seriously,” said Upadhyaya: At a time when investor interest is growing, reputational risks could affect future FDI flows.

The Nepal Stock Exchange (NEPSE) plunged by 11. 53 points to close at 2,650.11 points on Sunday.

Similarly, the sensitive index dropped by 2. 57 points to close at 446. 32 points.

A total of 24,011,014-unit shares of 300 companies were traded for Rs 10. 20 billion.

Meanwhile, Nepal Micro Insurance Company Limited (NMIC) and Crest Micro Life Insurance Limited (CREST) were the top gainers today with their price surging by 10. 00 percent. Likewise, Sindhu Bikash Bank Ltd (SINDU) was the top loser with its price dropped by 7. 45 percent.

At the end of the day, the total market capitalization stood at Rs 4. 40 trillion.

The price of gold has dropped by Rs 300 per tola in the domestic market on Sunday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 190, 500 per tola today. It was traded at Rs 190, 200 per tola on Wednesday.

The price of silver, however, has increased by Rs 10 and is being traded at Rs 1,970 per tola today.

Tilak Bahadur Rana Magar of Udayapur, who spent 30 years carrying heavy loads for a living, is now busy cultivating cardamom. Poverty forced him into labor work from the age of 15, but with the expansion of road networks and the arrival of tractors and mules in villages, his profession became obsolete. As traditional load-carrying work disappeared, Tilak Bahadur transitioned to cardamom farming.

He began by converting around 15 ropanis of land—once overgrown with wild plants like banmara and titepati, where not even maize or millet could grow—into a cardamom farm. With no other source of income, he turned to this crop after learning about it from television programs and friends. Today, Magar is a leading cardamom farmer in his area, and his economic transformation stands as a testament to the power of hard work and persistence. He proudly says that he no longer needs to go abroad to fund his children’s education.

Magar is just one example. Across eastern Nepal, many farmers are now cultivating cardamom as their main crop, turning it into a reliable source of income. What began as a means to cover household expenses has evolved into large-scale commercial farming for many.

The Cardamom Development Center, located in Pandam, Suryodaya Municipality-9 of Ilam district, has played a key role in this transformation. Established on 31 Oct 1976, on 345 ropanis of land, the center began the Cardamom Research and Development Program. In 1982, the districts of Ilam, Panchthar, and Terhathum were officially declared Cardamom Development Zones, and both government and private sectors began promoting its cultivation at scale.

Cardamom has become a major export commodity. It is estimated that cardamom accounts for 17 to 25 percent of Nepal’s agricultural export income. Nepal reportedly contributes more than 50 percent to the global large cardamom market. India is the primary export destination, but Nepal also exports cardamom to countries like Singapore, Pakistan, Afghanistan, and the UAE. In fact, 98 percent of Nepal’s cardamom is exported, with only two percent consumed domestically. Government figures estimate that annual cardamom exports are worth Rs 4bn to Rs 5bn.

This high export value has significantly benefited Nepal’s agricultural sector, helping to reduce the trade deficit and strengthen the national economy. While the eastern region remains the heart of production, cardamom farming is gradually spreading to western districts as well. Taplejung, Panchthar, Ilam, and Sankhuwasabha in Koshi Province are recognized as key production hubs.

The growing demand has led to a steady rise in the area under cardamom cultivation. Initially confined to a few eastern districts, the crop is now grown in around 42 districts, involving some 67,000 farming households. For many, cardamom is the main source of cash income, improving livelihoods through better employment, education, and healthcare.

One hectare of cardamom farmland can yield between 300 and 600 kilograms of dried pods annually, with market prices ranging from Rs 2,000 to Rs 4,000 per kilogram—making it a highly profitable crop even for smallholders.

Cardamom is Nepal’s top agricultural export and a significant contributor to foreign exchange earnings. The value chain—from cultivation to processing, packaging, and export—has created jobs at various levels. Local laborers involved in harvesting and drying can earn over Rs 30,000 per month in wages.

As a high-value cash crop, cardamom has become a beacon of hope for farmers in Nepal’s mid-hills and eastern regions. What once began as a subsistence activity has now matured into a fully commercial enterprise, offering not just economic opportunities but also contributing to rural development and national revenue.