FDI commitments fall to Rs. 58B, repatriation up

Kathmandu, July 19: Nepal received foreign direct investment (FDI) commitments worth Rs. 58 billion in the fiscal year 2025/26, down 11 per cent from the previous fiscal year. According to the Department of Industry, FDI commitments during the review period included Rs. 9.58 billion through the automatic route and Rs. 48.41 billion through the approval route.

The commitment is around Rs. 7 billion lower than the Rs. 64.96 billion pledged in the fiscal year 2024/25. During the fiscal year, a total of 1,116 foreign-invested industries were registered, comprising 897 through the automatic route and 219 through the approval process.

FDI commitments were highest in Shrawan (mid-July to mid-August 2025), when pledges reached Rs. 24.10 billion, accounting for over 41 per cent of the annual total. 

In contrast, Falgun (mid-February to mid-March 2026) recorded the lowest commitment at just Rs. 386 million. Similarly, the FDI commitment of Rs. 599 million was recorded in the month of Poush (mid-December 2025 to mid-January 2026).

The FDI commitment worth Rs. 10.38 billion was received in the month of Asar (mid-June to mid-July) of the fiscal year 2025/26.

Similarly, around Rs. 8.98 billion in FDI commitments were made in the month of Bhadra (mid-August to mid-September 2025), Rs. 2.04 billion in Ashoj (mid-September to mid-October 2025), and Rs. 1.54 billion in Kartik (mid-October to mid-November 2025). 

FDI worth Rs. 1.91 billion was received in the month of Mangsir (mid-November to mid-December 2025) of the last fiscal year.

Likewise, around Rs. 1.04 billion in FDI commitments was received in the month of Magh (mid-January to mid-February 2026), Rs. 1.12 billion in the month of Chait (mid-March to mid-April 2026) and Rs 3.53 billion in the month of Baishak (mid-April to mid-May 2026) of the last fiscal year.

The FDI commitment worth about Rs. 2.29 billion was received in the months of Jeth (from May 15 to June 14, 2026).

Small-scale industries dominate

Most FDI commitments during the last fiscal year were directed towards small-scale industries. Of the 1116 industries registered, 1,092 were small-scale, while 12 each in large and medium-sized industries were approved.

Sector-wise, the information and communication technology (ICT) sector accounted for the highest number of registrations, with 727 industries, representing 65 per cent of the total.

The tourism sector ranked second with 227 industries, making up 20.34 per cent of total registrations.

Similarly, 71 industries were registered in the service sector, 63 in manufacturing, and 18 in agriculture.

During the review period, only four industry each were registered in the energy and mineral sectors, while only two industries were registered in the infrastructure sector.

Agriculture tops in investment value

Although ICT led in the number of projects, the agriculture sector attracted the highest investment value, receiving commitments of Rs. 23.18 billion, which accounted for 40 per cent of total FDI commitments. 

The tourism sector followed with Rs. 14 billion in investment commitments. The service sector accounted for Rs. 4.91 billion, while the manufacturing sector received Rs. 3.91 billion.

The ICT sector, with 727 projects, received commitments only worth Rs. 2.83 billion. 

The mineral sector received the lowest commitments, with Rs. 185 million while the infrastructure sector received the investment commitment of Rs. 1.80 billion. Similarly, the energy sector received the investment commitment of Rs. 7.16 billion in the last fiscal year.

Industries approved for FDI in the last fiscal year have committed to providing jobs to 28,423 people.

Repatriation surges to Rs. 17.85 billion

While new FDI commitments declined, the amount repatriated by foreign companies operating in Nepal rose sharply during the last fiscal year.

According to the DoI, foreign firms repatriated Rs. 17.85 billion in royalties and dividends in 2025/26, an increase of 86 per cent from Rs. 9.61 billion in the previous fiscal year.

The repatriation trend has been rising steadily over the past few years.

Foreign companies repatriated Rs. 13.84 billion in 2022/23 and Rs. 10.18 billion in 2023/24 before the figure climbed to Rs. 17.85 billion in the last fiscal year.

The sharp increase in repatriation reflects higher profit distribution and royalty payments by foreign-invested companies, even as Nepal continued to attract fresh investment commitments across key sectors.