November 2: Despite a ‘wait and watch’ situation for investment in Nepal due to Covid-19 crisis, registration of projects with foreign investment this year is almost the same as that of last year.

A total of 89 projects with investment of Rs 19.15 billion have been registered with the Department of Industry in the first three months of the current fiscal year 2020/21.

The registration of such projects registered during the corresponding period of last fiscal year was also similar in number. The number of projects with foreign investment has remained almost similar in the last two years. However, the number is significantly less compared to the registration of foreign-backed projects in FY 2018/19, when a total of 129 projects were registered in the first three months.

Altogether 2,846 persons will get employment from the projects ranging from agriculture to IT, production, service sector and tourism industry registered in the current FY.

During the review period, tourism and service sectors have attracted more investment this year as well. A total of 58 projects related to tourism industry have been registered in the first three months of the current fiscal year. The total investment for the projects is estimated to be  around Rs 13.8 billion.

The second choice for foreign investors is the service sector. During the review period, a total of 25 projects were registered in this sector while the agriculture sector recorded one project and the IT sector drew just three projects. The commitment for investment in the service sector in the review period is Rs 4.5 billion. None of the investors have shown any interest in the energy sector in the first three months of the current fiscal year.

Senior Vice President of Hotel Association of Nepal (HAN) Binayak Shah says it is a positive development to see investors interested in the tourism industry but added there has been very little investment in real sense.

“We have also notice a trend of foreign investors just acquiring license,” said Shah, adding, “Foreign investors might have been attracted because there is still plenty of opportunities in the provincial capitals and other areas outside the capital.”

Although the number of projects registered in the first three months of FY 2018/19 was significantly more, the investment  commitment in that particular year was less than either the current FY year or the last FY.

In FY 2018/19, a total of 129 projects with investment of Rs 7.13 billion were registered with the department. However, investment for 88 projects registered in the last FY 2019/20 was Rs 19.25 billion.