Nepal's FDI Pledges Plunge 66% to Rs 11.12 Billion in First Two Months of FY 2026/27
Foreign direct investment commitments to Nepal fell 66.39% year-on-year to Rs 11.12 billion in the first two months of FY 2026/27, despite a rise in the number of approved projects to 328. Tourism attracted the largest share of pledged capital at 34%, while the ICT sector dominated by project count with 212 enterprises.
KATHMANDU, Sept. 20 — Foreign direct investment (FDI) commitments to Nepal plunged 66.39 percent year-on-year in the first two months of the current fiscal year (FY) 2026/27, according to data from the Department of Industry (DoI).
Between mid-July and mid-September, the country received FDI pledges worth Rs 11.12 billion for 328 projects, which are expected to create 3,447 new jobs. Of the total, 322 projects pledged Rs 9.75 billion through the automatic approval route, while six projects pledged Rs 1.38 billion through the regular approval process.
In the same period of the previous fiscal year, Nepal attracted FDI commitments of Rs 33.09 billion across 236 projects, underscoring the sharp contraction in new foreign investment pledges this year.
In the single month between mid-August and mid-September, foreign investors pledged Rs 6.35 billion for 136 new businesses, expected to generate 983 direct jobs.
By sector, the breakdown of the two-month FDI commitments is as follows:
- Tourism: Rs 3.74 billion (34% of total) across 70 enterprises
- Services: Rs 3.30 billion (30%) across 26 enterprises
- Energy: Rs 2 billion (18%) for a single project
- Manufacturing: Rs 1.23 billion (11%) across 18 enterprises
- Agriculture: Rs 20 million for a single project
- ICT: Rs 816.91 million (7%) across 212 enterprises
Tourism emerged as the top magnet for foreign capital, drawing 34 percent of total pledges. The services sector ranked second at 30 percent, while a single energy project accounted for 18 percent of the total.
The Information and Communication Technology (ICT) sector led by project count, with 212 enterprises representing 65 percent of all approved projects, even though its share of pledged capital stood at just 7 percent.