Nepal receives over Rs 53 bn in foreign investment commitments in first 10 months of fiscal year 2023/24

KATHMANDU: Nepal has seen a substantial influx of foreign investment commitments, totaling over Rs 53 billion, in the first ten months (mid-July to mid-April) of the current fiscal year 2023/24. This significant investment pledge encompasses 420 projects, as reported by the Department of Industry (DoI).

Breaking down the commitments, new projects account for Rs 41.38 billion across 307 initiatives. Additionally, Rs 9.47 billion has been pledged for 92 established projects through Share Purchase Agreements (SPA) and Share Subscription Agreements (SSA).

Notably, the government’s investment summit held on April 28 and 29 alone attracted commitments worth Rs 13.85 billion in late April.

A key development in the investment landscape is the automated system of the DoI, operational since April 28, which has approved Rs 2.15 billion in investments.

This system streamlines the approval process for foreign investments up to Rs 500 million, enhancing efficiency and encouraging foreign investors.

Sector-wise, the tourism sector has been the largest beneficiary, receiving 47 percent of the total investment pledges.

The service industry follows with 34 percent, the manufacturing sector with 11 percent, information and technology industry with 3 percent, and both the infrastructure and agriculture sectors with 2 percent each. The mining and energy sector received the remaining 1 percent.

Comparatively, this year’s investment commitments show a notable increase, nearly Rs 12 billion higher than the Rs 41 billion pledged by mid-April of the previous fiscal year.

Arjun Sen Oli, Information Officer of the DoI, highlighted that the investment summit alone garnered commitments exceeding Rs 16 billion across various projects.

Furthermore, by mid-April, Rs 241.7 million have been returned to investors. Foreign investors have repatriated profits amounting to Rs 9.29 billion from their projects in Nepal. According to the Department of Customs data, around Rs 3.5 billion in royalties have been taken back by investors within the same period.

This influx of foreign investment is poised to bolster Nepal’s economic landscape, with significant contributions across diverse sectors and a promising outlook for continued growth and development.