FDI commitments reach Rs 20.77bn in five months

Nepal received foreign investment commitments worth Rs 20.77bn for 319 projects over the first five months of the current fiscal year 2024/25. According to the monthly report on Foreign Direct Investment (FDI) approvals published by the Department of Industries (DoI), a total investment commitment of Rs 2.11bn was recorded in the fifth month (mid-November to mid-December) alone.

FDI commitments for 138 projects worth Rs 2.13bn came via the automatic route, while investment commitments for 181 projects worth Rs 18.64bn were made through the normal approval route. These projects have proposed to create 9,206 new jobs.

Likewise, commitments of another Rs 1.54bn have been made for share purchase approvals for 27 projects.

The investment commitments have been made across six sectors—manufacturing, agriculture and forestry, tourism, services, infrastructure, and information and communication technology (ICT).

According to the report on foreign investment commitments, the tourism sector attracted the highest number of projects and the largest investment during the review period. Out of the 319 projects receiving FDI commitments, 145 (or 45 percent) were in the tourism sector. In terms of the committed amount, a significant 62 percent—equivalent to Rs 12.76bn—was directed toward tourism. The service sector ranked second, with total FDI commitments of Rs 4.83bn for 40 projects, followed by the manufacturing sector, which received commitments worth Rs 1.81bn for 22 projects.

While the ICT sector ranked second in terms of the number of projects, it attracted investment commitments of only Rs 678.71m.

However, just over a third of the total commitments are actually realised. According to Nepal Rastra Bank (NRB), only 37.89 percent of the total FDI pledged over the past decade was realised. Between fiscal years 2014/15 and 2023/24, Nepal received total FDI commitments worth Rs 395.92bn. Of this amount, only Rs 126.29bn translated into actual investment.

In the fiscal year 2023/24, Nepal received Rs 61.9bn worth of FDI commitments. Only 13.57 percent of the committed amount, or Rs 8.4bn, was realised.

 

Rs 1.61bn repatriated in five months

Foreign investors took home Rs 1.61bn over the first five months of 2024/25 as returns from their investments.

According to the report, foreign investors transferred Rs 382.25m as royalty, Rs 851.6m as dividend and Rs 380.86m as service fee.

 

FDI approvals over first five months of FY 2024/25