·

Nepal Rastra Bank Releases Foreign Direct Investment Survey Report: 11.8% Increase

Author

NEPSE trading

Nepal Rastra Bank Releases Foreign Direct Investment Survey Report: 11.8% Increase

The Economic Research Department of Nepal Rastra Bank has released the Foreign Direct Investment (FDI) Survey Report for 2079/80. According to the report, Nepal has foreign direct investments from 58 countries, with the total stock increasing by 11.8%, reaching NPR 295.50 billion.

Key Highlights:

Structure of Investment:

  • Of the total foreign investment, paid-up capital accounts for 52.8%, reserves for 33.7%, and loans for 13.5%.

Major Investor Countries:

  • India: NPR 103.45 billion (35%)

  • China: NPR 35.46 billion (12%)

  • Ireland: NPR 22.62 billion (7.7%)

  • Australia: NPR 19.06 billion (6.4%)

  • Singapore: NPR 18.81 billion (6.4%)

Sectoral Distribution:

  • 59.7% of the foreign investment is in the industrial sector, while 40.2% is in the service sector.

  • Within the industrial sector, 30% is in hydropower and 29.4% in manufacturing.

  • In the service sector, 26% is in banks, financial institutions, and insurance companies.

Provincial Distribution:

  • Bagmati Province: 59.7% of the investment.

  • Gandaki Province: 15.1%.

  • Koshi Province: 14.7%.

  • Madhesh Province: 8.8%.

  • Less than 1% of direct investment in Lumbini, Karnali, and Sudurpashchim Provinces.

Status of Manufacturing Companies:

  • Capacity utilization at 60.69%.

  • Return on Equity (ROE) is 11.61%.

Gap Between Approved and Actual Investments:

  • Only 35% of the approved foreign direct investment has been realized in Nepal.

The Nepal Rastra Bank report aims to provide an overview of the current status, structure, and sectoral analysis of foreign direct investment in Nepal to support future policy-making.

Related News