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Foreign direct investment (FDI) commitments to the country fell sharply in the first month of the current fiscal year 2026/27.

According to the Department of Industry, foreign investors committed Rs. 3.77 billion for 191 projects during the first month of current fiscal year, from July 17 to August 16, 2026.

The FDI commitment dropped by 84 per cent during the review period as compared to the same period last fiscal year.

The commitment was Rs. 23.37 billion for the corresponding period of fiscal year 2025/26, representing a decline of Rs. 19.60 billion.

Of the total commitment received during the review period, Rs. 3.47 billion was pledged for 187 projects through the automatic route, while Rs. 299 million was committed for four industries through approval route.

Nepal received total FDI commitments of around Rs. 58 billion during fiscal year 2025/26.

ICT dominates in number of projects

Most of the FDI is focused on small industries. A total of 188 small-scale industries have been registered. Only two medium-scale industries have been registered while one large–scale industry registered during the review period.

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

A total of 128 industries have been registered in information and communication technology sector. This accounts for 67 per cent share of the total number of industry registration under FDI.

The second place goes to the tourism sector where 33 industries are registered. This is 17 per cent of the total number.

Similarly, 19 industries are registered in service, nine industries each in manufacturing and agro and forest-based industries.

During the review period, only one industry each has been registered in energy sector and agricultural related sector.

No industries were registered in infrastructure and mining sector during the first month of the current fiscal year.

Despite ICT leading in the number of projects, the tourism sector attracted the highest investment value at Rs. 1.63 billion. The manufacturing sector followed with Rs. 843 million investment commitment.

Similarly, information and technology sector accounted for Rs. 569 million and service sector Rs. 682 million.

Agro-based and energy sector received the lowest commitments, with Rs. 20 million each.

FDI approved industries for the first month of the current fiscal year have made their commitment to provide jobs to 1,773 people.