Nepal Attracts Foreign Direct Investment Infusion of Rs 30.09 Billion in Third Quarter

Foreign investors have pledged a significant capital injection of Rs 30.09 billion during the first nine months of the current fiscal year, according to records from the Department of Industry (DoI).

This marks a nominal increase compared to the same period last year, indicating sustained interest in Nepal's investment landscape. The DoI reports that a total of 269 foreign firms have received approval to operate in Nepal as of the end of the third quarter, with 16 new approvals granted in the past month alone. In a noteworthy development, the cumulative foreign direct investment (FDI) pledged by foreign investors now stands at an impressive Rs 480 billion, involving 6,128 foreign firms. Among these, the majority of investments are directed towards small industries, with 253 firms falling under this category. Additionally, 13 medium-sized industries and three large-scale industries have secured approval for investment.

Notably, the tourism sector emerges as the primary recipient of FDI, with 122 firms expressing interest in investing in this sector, comprising 45 percent of the total number of commitments. Other sectors attracting foreign investment include services, information technology, infrastructure, agriculture, and mining.

The influx of FDI underscores growing confidence in Nepal's economic potential and investment environment. With various sectors, particularly tourism, poised to benefit from foreign investment, these developments hold promise for economic growth and job creation in the country.