Nepal’s mineral sector failed to attract any foreign investment in the first seven months of the current fiscal year (2024/25), despite the Department of Industry approving foreign investments in eight different sectors under six key financial regulations.
Investment commitment data from approved projects show that no investors pledged funds for the mineral sector during this period. The department approved 26 projects, but interest in minerals remained negligible.
According to the department’s data, energy-based and infrastructure-related sectors also saw low investor interest. However, the government approved foreign investments in sectors related to energy, infrastructure, production, agriculture, forestry, and information technology.
Tourism, production and IT-based industries attracted significant foreign investment commitments. As in previous years, the tourism sector led in foreign investment pledges, with 168 projects receiving commitments worth Rs 17.32 billion.
The IT sector ranked second, with 134 approved projects and foreign investment commitments worth Rs 800 million. Despite a higher number of projects in ICT, the total investment volume remained relatively low compared to other sectors.
Service-based and production-based industries secured the highest investment commitments in terms of value. The service sector received commitments for 48 projects totaling Rs 5.69 billion, while the production sector attracted investment pledges for 27 projects amounting to Rs 2.12 billion.
Over the past seven months, the department approved foreign investment commitments for 26 projects worth Rs 26.84 billion, which, if fully realized, could create 10,726 jobs.
The department now approves foreign investment through two mechanisms: the automatic route and the general approval route. The automatic route has gained popularity, particularly after the third Investment Summit. Since its implementation on 29 April, 2024, 196 projects have received investment commitments totaling Rs 2.82 billion.
The automatic investment process accounts for 24% of total project commitments, with investments reaching Rs 10.74 billion. The government has introduced a provision allowing foreign investors to increase capital in their companies through the automatic route, with approvals for investments up to Rs 50 million.
