FDI Pledges Up, But Bottlenecks Remain

Foreign direct investment (FDI) pledges have risen to Rs 36.68 billion in the first four months of the current Fiscal Year (FY), nearly doubling the amount recorded during the same period last year. According to the Department of Industry, the total from mid-July to mid-November last year stood at Rs 18.66 billion. The increase of Rs 18.02 billion has injected positivity into Nepal’s industries and renewed investor interest. A total of 382 foreign-backed companies were registered during this period. Of these, 251 companies registered through the automated system, while the rest followed the standard procedure. The automated route alone accounted for Rs 2.36 billion in FDI pledges. Small-scale industries made up the majority of foreign investors, with 369 firms registered. Information technology retained its top position for the eleventh consecutive month, with 205 firms—around 54 percent of all new foreign direct investment registrations last month. This was followed by tourism with 118 firms. Manufacturing, energy, and agriculture saw fewer new companies, though agriculture attracted pledges worth Rs 21.88 billion, the highest among all sectors.