Kathmandu [Nepal], November 2 (ANI): Nepal has witnessed a significant surge in foreign investment commitments, totalling NPR 16.4 billion in the first quarter of the current fiscal year, which runs from September to October.
According to the Department of Industry, this figure includes a notable NPR 3.45 billion in pledges made during September alone, the Kathmandu Post reported.
Among these commitments, NPR 150 million was pledged for 21 industries through the automatic approval route, a system implemented following the Third Nepal Investment Summit held in April. This streamlined process aims to encourage foreign investors by reducing bureaucratic hurdles. An additional NPR 3.3 billion in pledges was secured through the approval route for 34 industries.
The tourism sector emerged as a leading recipient of foreign investment, capturing 64 per cent of the total commitments. This was followed by the services sector at 24 per cent, manufacturing at 7 per cent, agriculture at 4 per cent, and information technology at 1 per cent, reported the Kathmandu Post.
The diverse distribution of investment highlights the growing confidence in Nepal’s potential across multiple sectors.
In comparison to the previous fiscal year, when foreign investment commitments reached NPR 61.90 billion, the current pace of investment is promising. However, it is important to note that the actual net foreign investment in the last fiscal year amounted to only NPR 8.40 billion, as per data from Nepal Rastra Bank.
This disparity raises questions about the effective realisation of investment pledges into tangible economic growth, the Kathmandu Post reported.
The encouraging investment landscape reflects a renewed optimism in Nepal’s economic prospects, signalling potential advancements in various industries as the government continues to enhance its investment climate. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.