Foreign direct investment (FDI) commitments to Nepal decreased in the second month of the current fiscal year (FY 2024/25) compared to the first month.

FDI commitments in mid-August to mid-September were lower by Rs 5.32 billion compared to the period from mid-July to mid-August.

According to data released by the Department of Foreign Investment on Tuesday, Nepal received FDI commitments totaling Rs 3.83 billion during the review month. In the previous month (mid-July to mid-August), the country had received commitments worth Rs 9.15 billion.

The department’s data shows that Nepal received Rs 265 million in FDI commitments through the automatic route and Rs 3.56 billion through the traditional system between mid-August and mid-September. In comparison, the previous month's commitments amounted to Rs 59.75 million through the automatic route and Rs 8.555 billion through the traditional system.

In the first month of the current fiscal year, commitments through both automatic route and traditional system had increased. However, there was a decline in the second month.

From mid-August to mid-September, 21 projects were approved via the automatic route and 38 through the traditional system.

The department has been approving foreign investments in sectors such as manufacturing, energy, agriculture, tourism, minerals, services, information and technology (IT), and infrastructure projects. Most of the approved projects fall under tourism, IT, and the service sector. Many of these projects involve small investments and capacities.

Since the government introduced a policy to encourage foreign investment in IT sector, investors in that sector have increasingly utilized the automatic route. In mid-August to mid-September alone, 16 projects were approved via this route.