KATHMANDU, July 14 (Xinhua) -- Foreign equity investment inflows into Nepal more than doubled during the first 11 months of the current fiscal year 2025-26, although the country has long attracted only a modest amount of foreign direct investment (FDI), according to a report released by Nepal's central bank on Tuesday.
According to the Current Macroeconomic and Financial Situation Report published by the Nepal Rastra Bank, foreign equity investment inflows increased by 106.2 percent year on year to 22.83 billion Nepalese Rupees (about 148.92 million U.S. dollars) during the period.
Although FDI inflows rose significantly in the current fiscal year, FDI realization in Nepal has remained insignificant relative to the size of its economy in recent years. According to the World Investment Report 2026, published recently by the United Nations Conference on Trade and Development, Nepal recorded a sharp decline in FDI in 2024 and 2025.
However, Nepal has witnessed a significant increase in FDI commitments by foreign investors over the past five years compared with the preceding five-year period, according to the Department of Industry. But the realization of those commitments has remained far below expectations.
According to the department, it approved foreign investment commitments worth 47.62 billion Nepalese Rupees for 914 projects during the first 11 months of the current fiscal year. In the previous fiscal year 2024-25, Nepal recorded FDI commitments worth 64.96 billion Nepalese Rupees. ■