KATHMANDU:- Nepal recorded a strong rise in foreign direct investment (FDI) commitments during the first half of the current fiscal year 2025/26.

According to the Department of Industry, FDI commitments worth Rs. 39.23 billion were pledged for 475 projects between mid-July 2025 and mid-January 2026.

Of this amount, Rs. 5.99 billion was committed in the single month of Poush (mid-December 2025 to mid-January 2026).

With the latest additions, total FDI commitments in Nepal have reached Rs. 675.43 billion.

The FDI commitments increased by 52.23 per cent compared to the same period of the previous fiscal year.

In the first six months of FY 2024/25, foreign investors had committed Rs. 25.77 billion for 354 projects.

During the entire FY 2024/25, total FDI commitments stood at Rs. 64.96 billion.

Of the total commitments received in the review period, Rs. 36.42 billion for 161 projects was approved through the regular approval route, while Rs. 2.80 billion for 314 industries came through the automatic route.

Since the introduction of the automatic approval mechanism in October 2023, FDI commitments worth Rs. 19.04 billion for 905 industries have been received, according to the Department.

Nepal has simplified foreign investment procedures by allowing automatic approval for investments of up to Rs. 500 million, a move credited with encouraging small and medium-scale investments.

Small-scale industries dominate

Most FDI commitments during the period were directed towards small-scale industries. Of the 475 industries registered, 460 were small-scale, while only seven large and eight medium-sized industries were approved.

Sector-wise, the information and communication technology (ICT) sector accounted for the highest number of registrations, with 257 industries, representing 54 per cent of the total.

The tourism sector ranked second with 145 industries, making up 30.5 per cent of total registrations.

Similarly, 31 industries were registered in the service sector, 27 in manufacturing, and 13 in agriculture.

During the review period, only one industry each was registered in the energy and mineral sectors, while no industries were registered in the infrastructure sector.

Agriculture leads in investment value

Although ICT led in the number of projects, agriculture sector attracted the highest investment value, receiving commitments of Rs. 21.88 billion, which accounted for 55.7 per cent of total FDI commitments.

The tourism sector followed with Rs. 10.54 billion in investment commitments. The service sector accounted for Rs. 3.46 billion, while the manufacturing sector received Rs. 2.03 billion.

The ICT sector, with 257 projects, received commitments only worth Rs. 1.07 billion.

The energy and mineral sectors received the lowest commitments, with Rs. 184.2 million and Rs. 45 million, respectively.

Industries approved for FDI in the first six months of the current fiscal year have committed to providing jobs to 20,122 people.

During the review period, the repatriation amount (royalties and dividends) by foreign companies which have invested in Nepal stood at Rs. 1.61 billion.

The steady rise in FDI commitments highlights improving investor sentiment and the impact of recent policy reforms aimed at making Nepal a more attractive destination for foreign investment.