Nepal received foreign direct investment (FDI) commitments totaling Rs. 64.96 billion in the last fiscal year 2024/25.

According to the report of Department of Industry, foreign investors have made their commitment of around Rs. 64.96 billion for 840 projects during the last fiscal year (from July 16, 2024 to July 16, 2025) of the last fiscal year. Along with this, such commitment so far has reached Rs. 611 billion from the beginning.

According to the Department, about 123 industries were registered in the month of Asar (from June 15 to July 16) and investment commitments worth Rs. 4.35 billion was received in this month.

Out of total FDI commitment, the FDI commitment of Rs. 60.35 billion for 389 projects has been received through the approval route during the last fiscal year. Similarly, Rs. 4.61 billion for 451 industries has been received through the automatic route during the last fiscal year.

So far, FDI commitment worth Rs. 12.72 billion for 590 industries has come through the automatic route. The government started to approve investment through this method since October 2023. The government of Nepal streamlined the process for approving foreign investments of up to Rs. 500 million through the automatic route.

Small industries dominate registration

Most of the FDI is focused on small industries. A total of 824 small-scale industries have been registered. Only six large industries have been registered while 10 medium-size ones are registered over the last fiscal year.

Category-wise, most attraction of foreign investment is seen in the information and communication technology sector during the review period.

A total of 382 industries have been registered in information and communication technology sector. This accounts for 46 per cent share of the total number of industry registration under FDI. The second place goes to the tourism sector where 304 industries are registered. This is 36 per cent share of the total number.

Similarly, 84 industries are registered in service, 55 industries in manufacturing and 12 in agriculture related industries. During the review period, only two industries have been registered in infrastructure and one in energy sector. No industry was registered in mining sector in the last fiscal year.

In terms of the value of committed investments, the service sector led with Rs. 30.90 billion, followed by the tourism sector with Rs. 26.82 billion. Similarly, manufacturing sector accounted for Rs. 3.84 billion, ICT sector Rs. 1.84 billion and agriculture-related industries Rs. 1.46 billion.

Infrastructure and energy received the lowest commitments, with Rs. 50 million and Rs. 25 million, respectively. FDI approved industries for the last fiscal year have made their commitment to provide jobs to 19,536 people.

In the last fiscal year 2024/25, the repatriation amount (royalties and dividends) of the foreign companies invested in Nepal stood at Rs. 9.61 billion. The repatriation amount (royalties and dividends) of the foreign companies invested in Nepal was Rs. 10.18 billion in the previous fiscal year 2023/24.