FDI pledge plunges by 54% in Q1

DoI approved NRs 16.23 billion in FDI commitments across 422 projects in the first quarter of FY 2026/27 compared to NRs 35.14 billion across 311 projects in the previous period.

-the_farsight | Nov. 2, 2026, 5:27 p.m.

Nepal’s foreign direct investment (FDI) commitments fell by 53.8% in the first quarter of FY 2026/27, despite an increase in the number of approved projects.

According to the Department of Industry (DOI), 422 projects received approval for FDI commitments worth Rs 16.23 billion, compared to 311 projects worth Rs 35.13 billion in the same period last fiscal year.

Despite the overall decline in quarterly FDI commitments, the period from mid September to mid October 2026 recorded a higher commitment amounting to NRs 5.11 billion compared to the previous period’s NRs 2.04 billion.

Similarly, a total of 94 FDI projects were approved during mid September to mid October: 88 projects of NRs 4.84 billion through Automatic Route, and the remaining six projects amounting to NRs 266 million through the Approval Route.

Approval route:

Requires foreign investors to submit a business proposal to the Department of Industry or Investment Board of Nepal for pre-approval.

Automatic route:

Allows foreign investors to apply online for pre-approval for investments up to a certain amount in specific sectors

The total investment is expected to create 5,129 employment opportunities with the latest period’s investment adding 1,167 jobs.

Tourism dominates the investment commitment in Q1

The tourism category attracted the highest FDI commitments at NRs 6.08 billion, followed by energy at NRs 4 billion and service at NRs 3.58 billion.

In terms of project numbers, the Information and Communication Technology (ICT) sector recorded the highest number of approvals, with 252 projects in Q1. This represented the largest year-on-year increase among sectors, up from 162 projects in the corresponding quarter of the previous fiscal year. The investment pledge also rose significantly, increasing from NRs 150 million to NRs 920 million.

The service sector also witnessed growth, with approved projects increasing from 19 to 33, while manufacturing projects rose from 15 to 25. In contrast, projects in agriculture and forestry declined sharply from 11 to just two.

The minimum foreign investment threshold currently stands at NRs 20 million per foreign investor, down from NRs 50 million in 2022. However, ICT industries are exempt from this minimum requirement under the automatic approval route.