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ECONOMY

Nepal secures over Rs 60 billion in FDI commitments in 11 months of current FY

Nepal has secured Foreign Direct Investment (FDI) commitments exceeding Rs 60.6 billion in the first 11 months of the current Fiscal Year (FY) 2025/26.
By Republica

KATHMANDU, June 18: Nepal has secured Foreign Direct Investment (FDI) commitments exceeding Rs 60.6 billion in the first 11 months of the current Fiscal Year (FY) 2025/26.


Foreign investors have pledged a total investment of Rs 60.60 billion, with Rs 56.7 billion committed through the Department of Industries (DoI)’s certification (approval) system from Shrawan to Jestha (mid-July 2024 to Mid-June 2025), and Rs 386 million through the automatic system. According to the DoI, these commitments were made for 717 industries.


The DoI reported that during the 11-month period, investment commitments worth Rs 56.7 billion were obtained for 347 industries through the certification (approval) system. Likewise, commitments amounting to Rs 3.86 billion were received for 370 industries through the automatic system during this period.


During the 11-month period of the current FY, investment commitments worth Rs 1.96 billion have been made for 32 industries through Share Purchase Agreements (SPA) and Share Subscription Agreements (SSA). Similarly, the DoI has approved Technology Transfer Agreements (TTA) for 66 industries.


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According to the DoI, investment commitments were received for 702 small industries, 9 medium industries, and 6 large industries during the 11 months. If the committed investments materialize, it is expected that an additional 17,255 people will gain employment.


According to the DoI, a total investment commitment of Rs 590.35 billion has been received so far for 7,116 industries. Out of this, Rs 11.98 billion has been committed by 509 industries through the automatic approval system, while Rs 578.68 billion has been committed by 6,607 industries through the certification (approval) system. The DoI states that if the committed investments materialize, it is expected to create 345,165 jobs.


The highest investment commitments have been made in the Information and Technology industry and the Tourism sector. According to the DoI, 313.44 percent of the total commitments came from the Information and Technology industry, 266.37 percent from Tourism, 76.11 percent from the Service sector, 48.7 percent from Manufacturing, 11.11 percent from the Agricultural industry, 2 percent from Infrastructure, and only 1 percent from the Energy sector.


During the current FY's 11 months, foreign investment commitments have been received for about 717 industries. Of these, 266 industries belong to the Tourism sector, with a total investment commitment of Rs 23.94 billion.


Similarly, in the service sector, investment commitments worth Rs 30.447 billion have been received for 76 industries. In the information technology sector, investment commitments amounting to Rs 1.57 billion have been made for 313 industries. For 48 industries in the manufacturing sector, commitments total Rs 3.122 billion. The agriculture sector has received investment commitments of Rs 1.44 billion for 11 industries, while the infrastructure sector has received Rs 50 million for 2 industries.


From Shrawan to Jestha of the current FY, foreign investors received approval from DoI to repatriate Rs 9.60 billion in dividends. In the same period last FY, the DoI had approved the repatriation of Rs 9.97 billion in dividends.


According to the DoI, foreign investors were also granted approval to repatriate Rs 1.68 billion in royalties over the 11-month period. This included USD 9.917 million, INR 831.737 million, and EUR 61,431 in royalty payments.


According to the DoI, in the month of Jestha alone (mid-May to mid-June) of the current FY, Rs 87.8 million was approved for dividend repatriation.


Additionally, the DoI approved the repatriation of Rs 161.5 million, USD 552,289, and INR 425.18 million in royalties.


 

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