FDI Commitments in Nepal Amounting to Rs. 44 Billion This Year
June 18, 2024 | Investopaper
In the first eleven months of the current fiscal year, Nepal received foreign direct investment commitments amounting to Rs. 44.4 billion. This is over Rs. 10 billion more than the same period last fiscal year, which saw commitments of Rs. 34.58 billion. According to the Department of Industry, 359 direct foreign investment proposals were approved until Jestha, with 52 approved in Jestha alone, totaling Rs. 3 billion.
These investments are expected to create 20,146 jobs this year, with 2,323 jobs anticipated from Jestha’s investments. Projects with investments under Rs. 6 billion require approval from the Department of Industry, while those over Rs. 6 billion need approval from the Investment Board.
Total direct foreign investment in Nepal has reached around Rs. 500 billion since its inception, with 6,218 foreign investments approved, creating an estimated 329,655 jobs.
Most foreign investments have been in small industries, with 341 approvals this year. Medium-sized industries saw 14 approvals, and large industries had 4. In Jestha, 51 small industry proposals and one medium-sized industry proposal were approved.
Tourism attracts the most foreign investment, with 176 proposals (49 percent of the total) approved this year. The service sector had 114 proposals (32 percent), manufacturing had 40, IT had 10, agriculture had 8, infrastructure had 7, mining had 3, and energy had 1.
To facilitate foreign investment, the government implemented an automatic route policy this fiscal year, attracting Rs. 11.81 billion by Jestha. Ninety proposals were approved through this route, with 68 proposals in Jestha alone, totaling Rs. 8.27 billion. This policy was introduced during an investment summit held on Baisakh 16 and 17.