Foreign investment commitments in Nepal have seen a significant increase in the first eight months of the current fiscal year 2024/25 compared to the same period in the previous fiscal year.

According to the Department of Industry, Nepal received foreign investment commitments worth Rs 44.66 billion by mid-March 2025, marking a 53 percent rise from the Rs 29.13 billion committed during the same period in fiscal year 2023/24. However, despite the growth in commitments, actual foreign investment remains low.

In the first eight months of the last fiscal year, the department had approved foreign investments for 253 projects. This year, both the number of projects and the total committed investment have increased, with approvals granted for 427 projects. The government has amended various investment-related laws and regulations, particularly during the Third Investment Summit in 2024 and through recent ordinances, to attract more foreign investors.

To further facilitate investment, the Department of Industry has introduced an automatic investment approval system. This new system allows investors to receive approval for investments of up to Rs 500 million without having to visit the department in person. Additionally, the government has removed the minimum investment threshold for the information technology sector, encouraging more investment in this field. These changes are believed to have contributed to the rise in foreign investment commitments.

From mid-July 2024 to mid-March 2025, the department approved foreign investments totaling Rs 2.75 billion for 194 projects through the automated route. The traditional manual approval process continues alongside the new system. Since the automated route was implemented in April 2024, foreign investment commitments worth Rs 10.87 billion have been approved for 333 projects.

By mid-March 2025 in the current fiscal year, the department has granted approvals for a total of 233 projects, with a combined investment commitment of Rs 41.90 billion. The department typically approves investments ranging between Rs 2.5 billion and Rs 6 billion, though there is no investment limit for IT sector industries.

In a one-month period from mid-February to mid-March alone, 40 projects worth Rs 17.79 billion were approved through both automatic and manual processes. The number of small-scale industries receiving investment approval has also increased. By mid-March, foreign investment have been approved for 415 small, eight medium, and four large-scale industries. While the highest number of approved projects falls under the tourism sector, the largest investment commitments have been made in the service sector.