March 12: The commitment for foreign investment to the industrial sector of the country has declined in the current fiscal year. According to the Department of Industry, foreign investment commitment worth Rs 25.31 billion has been made in the first seven months of the current fiscal year, which is Rs 3.15 billion less than the corresponding period of the previous fiscal year.

The foreign investment commitment in the first seven months of the last fiscal year was Rs 28.46 billion.

Last year, the department approved investments from 15 countries, but this year it has approved investments from 13 countries. During the review period of current FY, China has pledged foreign investment commitment of Rs 18.16 billion, which is 71 percent of the total commitment. Chinese investors have granted permission to invest for the establishment of 105 different industries. The department has been informed that 3,081 people will get employment after the establishment of these industries. Lately, China has become the largest investor in Nepal's industrial sector.

Director General of the Department, Jiv Lal Bhusal, said that Chinese investment has been increasing in the last few years. “Even during the coronavirus pandemic this year, China has made more investment commitments than the previous year,” he said.

He said that although some of the commitments were reduced due to the pandemic, the commitment to industrial sector has not been significantly affected this year.

According to the department, investment worth Rs 17.29 billion was approved from China in the corresponding period of last fiscal year. China has committed to investing in sectors such as tourism, industry, and agriculture, the department said.

India is another major investor after China. During this period, the department has approved investment of Rs 3.86 billion from India.

Investment commitment made by India in the first seven months of last FY was Rs 2.93 billion.

Similarly, the third most investment commitment that the country received this year is England with Rs 3 billion, the fourth from Singapore with Rs 1.65 billion and America in the fifth with Rs 1.57 billion commitment.

Investment commitments in the industrial sector have also been received from Malaysia, Belgium, Mexico, Poland, South Korea, the Netherlands and the United Kingdom. According to Bhusal, the country has received the investment commitment in tourism, information and communication and energy sectors during this period.