Kathmandu – Nepal received foreign investment commitments worth more than NPR 11 billion during the first two months of the current fiscal year 2083/84.
According to the monthly report for Bhadra published by the Department of Industry, foreign investors committed NPR 11.12 billion to 328 industries during the months of Shrawan and Bhadra.
The proposed industries are expected to create 3,447 direct employment opportunities once they come into operation.
Foreign investors have shown significant interest in Nepal’s automatic route for foreign investment approval. Of the 328 approved industries, 322 were registered through the automatic route, accounting for investment commitments of approximately NPR 9.75 billion. The remaining six industries were approved through the traditional approval process, bringing commitments of around NPR 1.38 billion.
Tourism Leads in Investment Value, ICT in Number of Industries
In terms of investment amount, the tourism sector attracted the largest share of foreign investment commitments, while the Information and Communication Technology (ICT) sector recorded the highest number of approved industries.
Around 34 percent of the total foreign investment commitment, or approximately NPR 3.74 billion, was pledged to 70 tourism-related industries.
The service sector ranked second, receiving investment commitments of approximately NPR 3.31 billion, representing 30 percent of the total, across 26 industries.
Similarly, one energy project attracted NPR 2 billion, accounting for 18 percent of the total commitments. Eighteen manufacturing industries received approximately NPR 1.24 billion, while one agriculture-based industry attracted an investment commitment of NPR 20 million.
In terms of the number of industries, ICT dominated the approvals. A total of 212 ICT industries, representing around 65 percent of all approved industries, proposed investments worth approximately NPR 816.9 million.
NPR 6.35 Billion Committed in Bhadra Alone
During Bhadra alone, foreign investors committed approximately NPR 6.35 billion to 136 industries, with the proposed projects expected to create 983 jobs.
Of these, 135 industries were registered through the automatic route, while one received approval through the Department of Industry’s regular approval process.
In addition, investment worth approximately NPR 823.2 million was approved in 12 projects through share purchase agreements and share subscription agreements during the first two months of the fiscal year. Of this, nine agreements worth around NPR 569.2 million were approved in Bhadra alone.
The department also approved eight technology transfer agreements during the two-month period.
Foreign investors showed a strong preference for small-scale industries. Of the 328 approved industries, 323 were small-scale industries, while only two were medium-sized and three were large-scale industries.
Among the 136 industries registered in Bhadra, 134 were small-scale industries and two were large-scale industries, while no medium-sized industries were registered.
Foreign Companies Repatriate Royalties and Service Fees
According to the Department of Industry, foreign companies also repatriated significant amounts in royalties and service fees during the first two months of the fiscal year.
Royalty payments sent abroad included approximately NPR 622 million, USD 791,717, and INR 3.97 million.
Foreign companies also repatriated service fees amounting to approximately NPR 23.1 million, USD 21,838, INR 19.9 million, and AUD 5.74 million, according to the department’s data.
