Nepal Rastra Bank. (File Photo)
KATHMANDU: Nepal Rastra Bank (NRB) has made public the study report on Foreign Direct Investment (FDI) in Nepal in the Fiscal Year 2019/20.
According to the report, NRB has stated that most foreign investments came to Nepal from India in the fiscal year.
The Economic Research Department of NRB has conducted an on-site survey on foreign direct investment with the objective of assisting in formulating necessary policy on the basis of the regional situation and trend analysis of such foreign investment by collecting necessary data on foreign direct investment.
In the Fiscal Year 2019/20, a total of 153 companies operating in Nepal with foreign direct investment were selected and a direct ‘Foreign Investment Survey Report, 2019/20’ was prepared on the basis of data analysis obtained from the survey.
According to the results of the survey, by the end of FY 2019/20, the total foreign direct investment in Nepal decreased by 8.8 percent to Rs. 182.92 billion during the review period. Out of the total foreign investment, the share of paid-up capital is 48.2 percent, the reserve is 42.8 percent and the loan is 9.0 percent.
Total FDI inflows declined as the share of reserves declined by 27.0 percent. Similarly, as of mid-July 2020, 53 countries have a foreign direct investment in Nepal.
Out of which, the highest foreign direct investment is from India at Rs 56.05 billion, followed by China at Rs 27.56 billion, Saint Kitts and Nevis at Rs 24.94 billion, Ireland at Rs 11.59 billion, and Singapore at Rs 8.73 billion.
Of the foreign direct investment in Nepal, 51.1 percent is in the service sector and 48.8 percent in the industrial sector. Banks, financial institutions, and insurance companies accounted for 27.4 percent of the total foreign direct investment in the service sector.
Similarly, foreign investment in the manufacturing sector is 28.6 percent and in the hydropower sector is 20.0 percent.