KATHMANDU: China has emerged as the largest foreign investor in Nepal, accounting for 48 percent of the total approved foreign direct investment (FDI), according to the Economic Survey 2025/26.
The survey, presented by Finance Minister Dr. Swarnim Wagle, shows that as of March, China alone accounts for nearly half of Nepal’s total approved foreign investment, surpassing India, the United States, and other countries combined.
India holds a 17.9 percent share of total FDI in Nepal, while the combined share of other countries stands at 34.1 percent.
In terms of project numbers as well, China leads with 45.5 percent of all approved foreign investment projects. India accounts for 11.9 percent, while other countries collectively make up 42.6 percent.
Nepal currently approves foreign investment through two channels — the automatic route and the approval-based system. By Falgun 2082, a total of 7,951 projects had been approved, involving foreign investment worth Rs 625.58 billion.
These investments are expected to generate around 362,545 jobs, according to the survey.
In the current fiscal year 2025/26 alone, 554 projects worth Rs 40.70 billion have been approved so far, including 377 under the automatic route and 177 under the approval process. In the same period last fiscal year, 427 projects worth Rs 44.66 billion were approved, indicating an increase in project numbers but a slight decline in total investment value.
Sector-wise, the services sector attracted the highest share of foreign investment at 28.3 percent, followed by the energy sector at 23.03 percent and manufacturing at 13.18 percent.
The mining sector recorded the lowest share, at just 1.3 percent, despite Nepal’s mineral resources such as gold and iron ore. The survey notes that lack of clear policy has hindered exploration and extraction activities.
Comment