KATHMANDU, Sept 24: Despite ongoing challenges in the domestic economy, Nepal is witnessing a positive trend in foreign investment commitments. In the first two months of the current fiscal year 2023/24, spanning from mid-July to mid-September (Shrawan and Bhadra), the Department of Industries has recorded foreign investment commitments amounting to approximately Rs 18 billion.

According to the Department's data, in the month of Bhadra, foreign investment commitments reached Rs 5.89 billion, while in Shrawan, they amounted to around Rs 11.96 billion. These commitments comprise Rs 14.65 billion earmarked for new industries and an additional Rs 3.20 billion allocated for share purchase agreements (SPAs).

Notably, the month of Bhadra alone witnessed investment commitments of Rs 2.72 billion in 51 new industries and Rs 3.17 billion through SPAs and SSAs in 11 existing industries. These commitments are expected to generate employment opportunities for 5,502 individuals through the registered and committed industries by Bhadra.

The tourism sector emerges as the frontrunner, receiving the highest amount of investment commitments. Approximately 53.48 percent of the foreign investment commitments recorded until Bhadra are directed towards the tourism sector, while 44.39 percent are allocated for the service sector. The remaining commitments are distributed across manufacturing (9.8 percent), infrastructure (2.2 percent), information and communication technology (ICT) (2.2 percent), and agriculture (1.1 percent).

By the month of Bhadra of the current fiscal year, industries operating with foreign investments have proposed a dividend of Rs 250.07 million, reflecting the profit generated by these ventures. This influx of foreign investment commitments signals a positive outlook for Nepal's economic landscape and underscores the potential for growth and development in various sectors.