KATHMANDU: By the end of the fiscal year 2079-80 BS (2022-23), Nepal’s foreign direct investment (FDI) had exceeded Rs 295.5 billion, marking an 11.8 percent increase from the previous year.
This data was released in the Survey Report on Foreign Direct Investment, 2022-23, published by the Nepal Rastra Bank (NRB) on Friday.
The survey sampled 238 companies to assess the FDI inflow.
Of the total foreign investment, 52.8 percent was in paid-up capital, 33.7 percent in reserves, and 13.5 percent in loans.
As of mid-July 2023, Nepal had received FDI from 58 countries, with the highest contribution of Rs 103.45 billion (35%) from India, followed by Rs 35.46 billion (12%) from China, Rs 22.62 billion (7.7%) from Ireland, Rs 19.06 billion (6.4%) from Australia, and Rs 18.81 billion (6.4%) from Singapore.
The industrial sector attracted 59.7 percent of the total FDI, with 30 percent invested in hydropower and 29.4 percent in manufacturing.
The service sector accounted for 40.2 percent, with banks, finance, and insurance companies representing 26 percent of this share.
Provincially, Bagmati Province received the largest share of FDI at 59.7 percent, followed by Gandaki with 15 percent, Koshi with 14.7 percent, Madhesh with 8.8 percent, and less than one percent in Lumbini, Karnali, and Sudurpaschim provinces.
The capacity utilization of FDI-based manufacturing companies was reported at 60.69 percent, with a Return on Equity of approximately 11.61 percent.
Comment