44 percent of FDI committments in tourism

KATHMANDU, FEBRUARY 20: In the first seven months of the current fiscal year, 44% of the total foreign direct investment (FDI) commitments have been directed toward the tourism sector. According to the Department of Industry, Nepal received such committments worth approximately Rs 27 billion during this period, with Rs 17.32 billion pledged for 168 industries in the tourism sector.

Among all sectors, the tourism industry attracted the highest investment commitments. The information technology sector followed, securing Rs 806.86 million for 134 industries, accounting for 35% of the total pledged investment. Similarly, the service sector received Rs 5.69 billion for 48 industries, representing 12% of the total.

The manufacturing sector secured Rs 2.12 billion for 27 industries, while the agricultural sector received Rs 741 million for six industries. Additionally, the infrastructure sector attracted Rs 120 million for two industries. In terms of percentage, the manufacturing sector accounted for 7% of total commitments, agriculture 2%, and infrastructure 1%.

Breakdown of FDI commitments 

During the review period, the country received total FDI commitments of Rs 26.84 billion. Of this, Rs 24.21 billion was pledged through the Department of Industry’s approval system, while Rs 2.62 billion was committed via the automated system. These commitments were spread across 386 industries.

The approval system facilitated Rs 24.21 billion in commitments for 211 industries, whereas the automated system accounted for Rs 2.62 billion for 175 industries.

Additionally, Rs 1.94 billion was committed through Share Purchase Agreements (SPA) and Share Subscription Agreements (SSA) for 32 industries. Technology Transfer Agreements (TTA) were also approved for 42 industries.

Investment commitments were received for 375 small-scale industries, seven medium-scale industries, and four large-scale industries. If these investments materialize, they are expected to generate 10,726 new jobs.

Cumulative investment commitments and job creation potential

To date, Nepal has received total foreign investment commitments of Rs 546.6 billion for 6,785 industries. Of this, Rs 10.74 billion was pledged through the automated system for 314 industries, while Rs 535.85 billion was committed through the approval system for 6,471 industries. If fully realized, these investments are expected to create 338,967 jobs.

Investment commitments in Magh (mid-January to mid-February)

In the last Nepali month of Magh alone, Nepal received FDI commitments exceeding Rs 1 billion for 32 industries. Of this, Rs 818.5 million was pledged through the approval system for 11 industries, while Rs 246.7 million was committed through the automated system for 21 industries.

Additionally, Rs 92.2 million was pledged through Share Purchase Agreements (SPA) and Share Subscription Agreements (SSA) for two industries, while Technology Transfer Agreements (TTA) were approved for 17 industries. These investments are expected to generate 698 new jobs.

In this month, investment commitments were received for 33 small-scale industries, two medium-scale industries, and one large-scale industry.