KATHMANDU, Nov 17: Nepal has received foreign investment commitments totaling Rs 19.81 billion over the past four months, according to the Department of Industry (DoI). These commitments are set to come through automated systems, formal approvals, and share purchases.
Out of the total pledged investment, Rs 1.62 billion has been committed for 109 industries via the automated system, and Rs 17.38 billion for 154 industries through the approval route. An additional Rs 1.14 billion has been approved for 25 industries, including investments related to share acquisitions.
In Kartik alone (mid-October to mid-November), foreign investors committed Rs 613.80 million to 36 industries through the automated route. Similarly, Rs 1.61 billion was pledged for 23 industries via the approval process. Additionally, investors promised Rs 20 million for share purchase and subscription in one industry.
Based on these commitments, approximately 7,667 jobs are expected to be created. Small industries have attracted the highest number of commitments, with 151 projects, while medium and large industries received one and two commitments, respectively. Sector-wise, the tourism industry topped the list, followed by services, manufacturing, agriculture, energy, minerals, and information technology.
Nepal receives FDI commitment of only Rs 30 billion in 10 month...
Surge in business visa requests
The number of foreign investors seeking business visa recommendations has also risen. In the first four months of the previous fiscal year, 1,005 applications were made, but this figure has increased to 1,020 for the same period this year. The number of investor representatives has also gone up, reaching 205, along with 332 dependents seeking visa recommendations.
Decline in dividend and royalty repatriation
A significant decrease has been observed in the funds repatriated from Nepal as dividends and royalties. In the last four months, investors have sent Rs 382.25 million back to their home countries as royalties, significantly down from Rs 748.68 million in the same period last year.
In US dollars, investors repatriated 815,521 dollars this year, up from 591,468 dollars last year. Meanwhile, repatriated funds in Indian rupees rose to INR 200.5 million, compared to INR 192 million previously. Additionally, 10,200 euros were sent out as royalties this year.
Royalties are typically paid for the use of foreign technologies and related services. Dividend repatriation amounted to Rs 64 million this year, a sharp drop from Rs 1.41 billion last year.
By mid-October, service fees collected had reached Rs 380.86 million in Nepali currency, USD 2.87 million, and INR 57.62 million, as per DoI records.
