KATHMANDU: Nepal has witnessed a decline in foreign investment commitments during the first six months of the current fiscal year compared to the same period last year, according to the Department of Commerce and Industry.
Foreign investment commitments totaled Rs 20.77 billion in the current fiscal year, a drop of Rs 1.56 billion from the Rs 22.33 billion committed during the corresponding period in the previous fiscal year.
While the monetary value of commitments has declined, the number of proposed industries has increased.
In the first six months, foreign investors committed to three large-scale, four medium-sized, and 312 small-scale industries, compared to three large, 12 medium, and 211 small-scale industries last year.
The tourism sector remains the most attractive for foreign investors, accounting for 62 percent of total commitments, or Rs 12.76 billion. This marks a significant increase from the 30 percent share of total commitments the sector received in the same period last year.
The service sector ranks second, attracting 23 percent of total foreign investment, equivalent to Rs 4.83 billion, down from 33 percent last year.
In numerical terms, the information technology sector has emerged as a strong contender, with commitments made for 106 industries during the review period.
Foreign investment commitments in the first half of the fiscal year are expected to generate employment for 9,206 individuals, reflecting ongoing investor interest in sectors with growth potential.
The shift in sectoral preferences, especially the growing focus on tourism and information technology, highlights evolving investment trends in Nepal. However, the overall decline in monetary commitments emphasizes the need for policy measures to sustain and attract foreign investments.
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