Kathmandu, May 18: Foreign companies operating in Nepal repatriated Rs. 17.79 billion in royalties and dividends during the first 10 months of the current fiscal year 2025/26, marking a sharp 87 percent increase compared to the same period last year.
According to Department of Industry, foreign firms had repatriated Rs. 9.49 billion during the corresponding period of fiscal year 2024/25. In the single month of Baisakh alone, foreign investors repatriated Rs. 977 million from Nepal. The latest figure has already exceeded the total annual repatriation of Rs. 9.61 billion recorded in the previous fiscal year.
The repatriation amount stood at Rs. 10.18 billion in fiscal year 2023/24 and Rs. 13.84 billion in fiscal year 2022/23, indicating a steady rise in profit distribution and royalty payments by foreign-invested companies.
FDI Commitments Fall by Over 20 Percent
Despite the rise in repatriation, foreign direct investment (FDI) commitments declined significantly during the review period. The Department of Industry reported that Nepal received FDI commitments worth Rs. 45.32 billion for 728 projects between July 17, 2025 and May 14, 2026.
This represents a decline of Rs. 11.74 billion, or 20.57 percent, compared to the same period last fiscal year, when commitments totaled Rs. 57.06 billion for 576 projects. Total FDI commitments for the entire previous fiscal year stood at Rs. 64.96 billion.
Of the total commitments received this year, Rs. 39.55 billion came through the approval route, while Rs. 5.76 billion entered through the automatic route. Among the 728 registered industries, 533 were registered through the automatic route and 195 through approval. In Baisakh alone, Nepal received FDI commitments worth around Rs. 3.53 billion.
Small Industries Dominate Foreign Investment
Most foreign investments during the review period were directed toward small-scale industries. Out of the total registered industries, 711 were small industries, while only nine were large-scale and eight medium-scale industries. Sector-wise, the information and communication technology (ICT) sector attracted the highest number of projects, with 421 registrations accounting for nearly 58 percent of the total.
The tourism sector followed with 189 projects, representing 26 percent of the total registrations. Similarly, 55 industries were registered in the service sector, 42 in manufacturing, and 16 in agriculture. Only two industries each were registered in the mineral and energy sectors, while just one infrastructure project received foreign investment during the review period.
However, in terms of investment volume, agriculture attracted the highest FDI commitment at Rs. 22.08 billion, followed by tourism with Rs. 12.54 billion. Service industries secured Rs. 4.23 billion in commitments, manufacturing received Rs. 2.70 billion, while the ICT sector attracted Rs. 1.74 billion.
The industries registered during the review period have pledged to create 23,530 jobs, including 948 jobs from industries registered in Baisakh alone. #Nepal
