Foreign direct investment (FDI) pledges have risen to Rs 36.68 billion in the first four months of the current Fiscal Year (FY), nearly doubling the amount recorded during the same period last year. According to the Department of Industry, the total from mid-July to mid-November last year stood at Rs 18.66 billion. The increase of Rs 18.02 billion has injected positivity into Nepal’s industries and renewed investor interest. A total of 382 foreign-backed companies were registered during this period. Of these, 251 companies registered through the automated system, while the rest followed the standard procedure. The automated route alone accounted for Rs 2.36 billion in FDI pledges. Small-scale industries made up the majority of foreign investors, with 369 firms registered. Information technology retained its top position for the eleventh consecutive month, with 205 firms—around 54 percent of all new foreign direct investment registrations last month. This was followed by tourism with 118 firms. Manufacturing, energy, and agriculture saw fewer new companies, though agriculture attracted pledges worth Rs 21.88 billion, the highest among all sectors.
Take holistic measures to boost FDI in Nepal
Altogether, 7,621 domestic and foreign business registrations during this period are expected to generate employment for 33,814 individuals. Notably, these commitments have come at a time when the country is grappling with the aftermath of sudden Gen-Z protests, which caused significant damage to public and private infrastructure. For these pledges to translate into real investments, the government must expedite long-pending processes. Reducing procedural delays is essential, as prolonged file handling risks discouraging investors. The government also needs to improve the efficiency of its automated system to encourage more investors to use it. Transparent policy implementation—particularly regarding taxation and regulatory treatment—remains crucial for investor confidence. A one-stop service system would further ease the investment process, but such an initiative requires strong coordination among ministries and departments. At the same time, the development of basic infrastructure, including transport, internet connectivity, and an uninterrupted power supply, is necessary to attract large-scale projects.
The growing interest in the information technology sector signals significant untapped potential. Training initiatives will be needed to meet labor demand in new ventures. In agriculture, efficient logistics and easier access to land are vital for converting investment pledges into successful projects. Ensuring security in business areas will also help Nepal present itself as a safe and attractive investment destination. Policymakers must recognize that promises alone do not create industries or jobs. Investors seek sound governance, predictable regulations, and reliable security—prerequisites Nepal must fulfill to convert investment commitments into real ventures that strengthen its industrial base.
