Kathmandu, Jan. 16 -- Foreign direct investment (FDI) in Nepal declined by nearly 40 percent in the second quarter of the current fiscal year, reflecting a deteriorating investment climate following the violent Gen Z protests in September and the continuing political uncertainty.

FDI inflows failed to keep the momentum seen in the first quarter as investors adopted a wait-and-watch approach amid the fallout from the protests and the uncertain political situation, officials said.

According to the Department of Industry, Nepal received FDI commitments worth Rs39.25 billion across 476 projects in the first six months of the current fiscal year until mid-January. This marks a sharp decline from Rs65.09 billion committed through 850 projects...