Nepal approves Rs 3.77 billion in foreign investment commitments in first month of FY 2026/27

KATHMANDU: Nepal received foreign investment commitments worth Rs 3.77 billion in the first month of the current fiscal year 2083/84.

According to the monthly report published by the Foreign Investment & Technology Transfer Section of the Department of Industry, a total of 191 projects received approval for foreign investment commitments worth Rs 3.77 billion in Shrawan.

Of the total approved projects, 187 came through the automatic route, with investment commitments amounting to Rs 3.47 billion. The remaining four projects were approved through the regular process, with commitments totalling Rs 299.4 million.

The proposed projects are expected to create employment for 1,773 people.

Small-scale industries dominated foreign investment approvals during the month. Of the 191 approved projects, 188 were small industries, while two were medium-sized and one was a large-scale industry.

In terms of investment volume, the tourism sector attracted the highest amount, with 33 projects receiving commitments worth Rs 1.63 billion, accounting for around 43 percent of the total foreign investment commitment.

However, the information and technology sector recorded the highest number of projects, with 128 projects receiving investment commitments worth Rs 569.83 million.

The manufacturing sector received commitments worth Rs 843.2 million through nine projects, while 19 projects in the services sector received commitments worth Rs 682 million. The energy sector and agriculture and forestry-based industries each received commitments of Rs 2 million through one project.

No foreign investment proposals were received in the mineral and infrastructure sectors during the month.

In addition to approving foreign investment, the Department of Industry approved Rs 254 million through three share purchase or share subscription agreements and approved eight technology transfer agreements.

The department also recommended business visas for 134 individuals, including 50 investors, 36 representatives and 48 dependants, during Shrawan.

Similarly, recommendations were made for non-tourist visas for eight individuals for advertising purposes and one for technology transfer.

Although no amount was repatriated as dividends during the month, Rs 24.21 million, USD 633,000 and INR 1.03 million were repatriated as royalties.

According to the department, Rs 17.18 million and INR 2.21 million were also sent abroad as service fees.