Nepal secured commitments for Foreign Direct Investment (FDI) worth Rs 47.61 billion during the first 11 months of the current fiscal year 2025/26, marking a decline of nearly Rs 13 billion compared to the Rs 60.60 billion pledged during the corresponding period of the previous fiscal year.
According to the Department of Industry (DoI), analysts attribute the slowdown in investment commitments mainly to the September 8–9 Gen Z movement and the subsequent change in government, which affected investor confidence.
The largest amount of FDI commitments, exceeding Rs 20 billion, was recorded during the first month of the current fiscal year (mid-July to mid-August 2025). However, commitments gradually declined in the following months amid political and social uncertainties.
Of the total pledged amount, Rs 7.71 billion came through the automatic route, while Rs 39.90 billion was approved through the regular approval process. During the review period, 914 foreign-invested firms were registered.
In the latest month alone (mid-May to mid-June), Nepal received investment commitments worth Rs 2.29 billion, while 186 new firms were registered.
Sector-wise, the government granted operating licenses to nine large industries, 11 medium industries, and 894 small industries. The information technology (IT) sector attracted the highest number of projects, with 577 IT-based companies registering and securing investment commitments totaling Rs 2.36 billion.
The tourism sector saw the registration of 202 industries, attracting commitments worth Rs 12.99 billion. Meanwhile, the agriculture sector received the largest investment value, with Rs 22.08 billion pledged across 16 projects.
Other sectors receiving foreign investment included 52 manufacturing industries, two energy projects, two mining-related industries, and one physical infrastructure project.
Despite the decline in overall commitments, the figures indicate continued foreign investor interest in Nepal, particularly in agriculture, tourism, and information technology sectors.
