FDI commitments soar to Rs 58bn in nine months
Nepal received foreign direct investment (FDI) commitments totaling nearly Rs 58bn over the first nine months of fiscal year 2024-25.
According to the Department of Industry (DoI), Nepal received FDI commitments worth Rs 57.97bn for 480 projects during the review period.
Recent reforms in Nepal’s business and investment laws appear to have made a positive impact, with FDI commitments over the past two months—between mid-February and mid-April—alone reaching Rs 31.10bn. Nepal received investment commitments of Rs 17.79bn for 40 projects in Falgun (mid-February to mid-March) and Rs 13.31bn for 53 projects in Chaitra(mid-March to mid-April), shows the monthly report of the DoI.
If these commitments materialize, the 480 projects will generate direct employment for 12,435 people. Of these projects, 468 are categorized as small industries, eight as medium industries and four as large industries. All 53 investment proposals received in Chaitra were for small industries.
The tourism sector attracted the highest number of investment commitments over the past nine months. According to the Department of Industry, a total of 189 proposals were received in this sector. The ICT sector was next with 185 proposals, followed by services (63), manufacturing (34) and agriculture (7). The DoI received one proposal each in the energy and industrial sectors.
In terms of committed amount, 60 percent of total FDI proposals were in the services sector, which attracted over Rs 34.92bn. Tourism followed with Rs 18.38bn, manufacturing with Rs 2.74bn, ICT with Rs 1.11bn and agriculture with Rs 761m.
Although the commitments look optimistic, actual FDI inflows have historically remained low in Nepal. According to Nepal Rastra Bank (NRB), only 36 percent of approved FDI commitments from 1995-96 to 2022-23 translate into actual investments.
In 2022-23, the total FDI stock rose by 11.8 percent to Rs 295.5bn, but net FDI inflow stood at just Rs 6bn. In 2023-24, only Rs 8.4bn, or 13.59 percent, of the Rs 61.78bn in committed investment was realized.
Experts say inadequate physical infrastructure—including roads, reliable energy supply, and industrial zones—are a major barrier to attracting FDI in Nepal.
While electricity supply has improved in recent years, industrialists say it remains inconsistent, forcing them to rely on generators. Restrictions on profit repatriation and rigid labor laws have also discouraged investment in the past.
However, government officials claim that recent legal reforms have begun to address these long-standing challenges.
Birgunj Customs Office collects Rs 124 billion in revenue in nine months
The Birgunj Customs Office has collected public revenue of Rs 124. 7 billion in nine months of the current fiscal year.
According to the office, Rs 12.15 billion was collected in July (Shrawan), Rs 13.42 billion in August (Bhadra), Rs 13.47 billion in September (Ashoj), Rs 11.10 billion in October (Kartik), Rs 14.40 billion in November (Mangsir), Rs 15.47 billion in December (Poush) and Rs 14.44 billion in January (Magh).
Similarly, Rs 14.63 billion was collected in February (Falgun) and Rs 15.47 billion in March (Chaitra).
Gold price hits new record at Rs 187, 000 per tola
The price of gold has reached an all-time high in the domestic market on Wednesday, setting a new historical record.
According to the Federation of Nepal Gold and Silver Traders, the price of gold has increased by Rs 2, 700 per tola to reach Rs 187, 000 per tola today. It was traded at Rs 184, 300 per tola on Tuesday.
Similarly, the price of silver has increased by Rs 10 and is being traded at Rs 1, 955 per tola.
Trump signs executive action to lower drug prices
US President Donald Trump signed an executive order on Tuesday to lower drug prices by allowing states to negotiate more freely overseas and streamlining the price negotiating process.
This move addresses the issue that Americans have the highest prescription drug prices in the world, often leading consumers to pay a significant portion of their medical costs out of pocket, despite having high insurance premiums, CNN reported.
A White House official stated, "This executive order will deliver significant relief to seniors and low-income individuals who rely on essential medications, such as insulin, among many others."
The official also emphasized that the purpose of the initiative is to make the prescription drug market more competitive so that consumers and the government pay prices that accurately reflect the value of these drugs rather than being impacted by complicated government payment strategies.
