Rs 24.1bn FDI commitment received in August

Nepal received foreign investment commitments worth Rs 24.10bn the first month of the current fiscal year. According to the Department of Industry, foreign investment commitments were received for 127 projects in August. The commitments received during the month are 163 percent higher than in the same period of the previous fiscal year when foreign investors had committed to invest Rs 9.15bn in 90 projects.

Monthly foreign direct investment approval data released by the department shows the total commitments have been made for 125 small-scale industries and two large-scale projects. Sectorwise, the agriculture sector received the highest investment in terms of value. The sector attracted investment of Rs 20.04bn, or 83 percent of the total investment commitments for the month, for just three projects.

The tourism sector came next, with 41 projects drawing Rs 3.02bn, or 13 percent of total commitments. In terms of project numbers, the ICT sector saw the highest interest, attracting 71 projects with total commitments of Rs 365.2m. The manufacturing sector received investment commitments of Rs 155m across three projects. One energy project secured Rs 184.2m in commitments. Similarly, eight projects in the service sector attracted Rs 335m in investment pledges.

These ventures have pledged to create 8,268 new jobs. Additionally, eight projects involving share purchases and subscriptions attracted Rs 1.99bn in commitments. The department also recorded five technology transfer agreements during the month. Meanwhile, foreign investors repatriated Rs 2.90bn as dividends in the first month of 2025/26, up from Rs 64m in the same period of the previous fiscal year. 

In 2024/25, Nepal received a total foreign investment commitment of Rs 64.96bn for 840 projects. These projects pledged to create 19,536 new jobs.  However, only about a third of the total commitments are actually realized. According to Nepal Rastra Bank (NRB), only 37.89 percent of the total FDI pledged over the past decade was realized. Nepal received total FDI commitments worth Rs 395.92bn between 2014/15 and 2023/24. Of this, only Rs 126.29bn translated into actual investment.

 

Destitute citizens to have insurance coverage

The Ministry of Health and Population is going to integrate the social health security programs.

Accordingly, Minister for Health and Population Pradeep Poudel today approved the 'Destitute Citizen Medical Treatment Program Operation Guidelines, 2080 (First Amendment 2082)'. 

The Guidelines has made a provision for a single-door system to provide payment for the treatment of eight types of serious diseases provided through the Destitute Citizen Treatment Program through the Health Insurance Board. With the approval of these guidelines, the Destitute Citizen Treatment Program has come under the umbrella of health insurance.

The revised guidelines has made a provision for the payment process of the destitute citizens treatment program run by the Department of Health Services, Nursing and Social Security Division to be enforced through the Health Insurance Board and other activities related to the program, such as hospital listing, integrated monitoring, etc., to be done by the Nursing and Social Security Division.

Approving the guidelines, Minister Poudel said that the government is committed to the medical treatment of destitute citizens and is active in making the insurance program more integrated, systematic and transparent.

Ministry spokesperson Dr Prakash Budhathoki said that after the implementation of these guidelines will make the state's investment economical. 

After the implementation of these guidelines, everyone's accounts will be clear and benefits will reach the real patients.

 

Why more Nepalis are choosing visit visa over labor permit

The number of Nepalis traveling abroad on visit visas has been increasing sharply in recent years. The number surged from 90,180 in 2021 to 271,305 in 2024. Although visit visas are intended for short visits, most of these individuals do not return back. They find work abroad and settle there—without ever going through the official labor migration process. According to the Department of Immigration, there has been a significant rise in the number of people who leave Nepal on visit visas for work purposes.

The trend grew after the Covid-19 pandemic, which left many in Nepal jobless. Small businesses shut down, and employment opportunities dried up. Since many find the process of getting a labor permit long and complicated, they opt for the quicker route by obtaining a visit visa.

According to the Department of Immigration, a growing number of women are also leaving the country on visit visas. The number of women traveling abroad on a visit visa increased from 13,040 in 2021 to 114,333 in 2024. Despite this surge, the number of people leaving the country with official labor permits has remained almost constant in recent years. Remittances flow, however, doubled over the period.  

In fiscal year 2015/16, 642,859 Nepali youth left the country with labor permits. That year, the country received Rs 665bn in remittances. In 2023/24, 741,000 Nepali youths officially left for foreign employment. Despite a small increase in the number of youths leaving the country during the period, remittances increased drastically to Rs 1,445bn in 2023/24. This is because remittances from undocumented workers or those on visit visas are also included in the national total, officials say.

Reforming the system

Speaking at a recent event, Minister for Labor, Employment and Social Security, Sharat Singh Bhandari, said the government was working on a new system to allow Nepalis who go abroad on visit visas to get labor approval from Nepali embassies in their host countries. Currently, this is possible in countries like UAE and Saudi Arabia, where workers can apply for labor permits through the embassy while already living there. The ministry believes this could reduce the difficulties and risks for workers who initially travel on visit visas.

“Out of about 500,000 people who enter the Nepali labor force each year, only 100,000 can be absorbed into domestic jobs,” Bhandari said. “The remaining 400,000 leave the country by various means. There is no way we can stop them here.” Ram Chandra Tiwari, director general of the Department of Immigration, believes many youths, who leave on visit visas, still send remittances home. However, their data is not separated in national records.  Over the past eight years, official labor migration numbers have barely changed. However, the overall departures have grown significantly.

Why official process is avoided

Stakeholders say there are six reasons why people are avoiding the official process to land them a job in foreign countries. First, the labor permit process is lengthy and cumbersome. Choosing a manpower agency, undergoing medical tests, attending orientation training, waiting for pre-approval and receiving the permit can take months. This is forcing many people to choose quicker alternatives.

Second, people feel working through agents is faster and easier. Agents promise to send people abroad within a week or two. Third is to bypass government bans. Nepal has banned labor migration to certain countries and jobs for safety reasons. Since demand for Nepali workers is high in these places, agents use visit visas as a “backdoor” route, especially for women seeking domestic jobs in Gulf nations.

Fourth is the high cost involved in labor migration. Recruitment agencies often charge higher-than-authorized fees. This makes legal migration expensive. Fifth is due to the growing trust in local agents. They convince people by saying things like, “I’ve sent many people before—nothing will happen”. This helps convince youths easily.

Sixth is the option to find jobs freely. Under formal labor contracts, workers are bound to a single employer. They cannot switch jobs even if they are unhappy with the job or salary. Some people believe they can travel on visit visas and find jobs on their own terms.

Rules being tightened

To address these issues, the Department of Immigration has begun tightening controls at Tribhuvan International Airport. As per a new policy currently under discussion: those caught with fake documents will be handed over to the police. Tiwari said anyone carrying suspicious documents will be arrested for investigation. “We are doing this after consulting with all stakeholders,” he said, referring to Nepal Police, Civil Aviation Authority of Nepal, the tourism ministry and the airline companies. He said the department will make a formal announcement of the new policy soon.

The department insists that it wants to prevent abuse of visit visas, not stop legitimate travelers. The new rule aims at targeting rackets that charge people hundreds of thousands of rupees to send them to Gulf countries on visit visas. These groups often include agents, middlemen, airline staff, and even some corrupt officials. At present, loopholes allow those with fake documents to slip through undetected. The new regulation intends to close that gap. Anyone with doubtful documents or suspicious behavior will be required to hand over six types of supporting documents at the airport. If they fail to comply, immigration officers will be empowered to involve the police for further investigation.

 

Kathmandu-Manthali road obstructed

Vehicular movement along the Kathmandu-Manthali road section has been obstructed after the road collapsed at Halede in Likhu Tamakoshi Rural Municipality-7, Ramechhap on Wednesday.

Local Sanjiv Chauhan informed that the passengers heading to Charikot, Dolakha from Kathmandu have been stranded midway.

Meanwhile, Chief District Officer Shyam Krishna Thapa said that efforts were on to reopen the roadway after repairing the collapsed section.