Foreign direct investment from 58 countries in Nepal, most from India

With the aim of assisting in policy making by analyzing the sectoral conditions and trends of foreign direct investment, the National Bank has been publishing a report after completing an on-site survey every financial year.

In the fiscal year 2079/080, a total of 238 companies were selected from the companies operating under foreign direct investment in Nepal and the survey report on foreign direct investment, 2079/080, was prepared based on the analysis of the data and other details obtained from the survey, according to the Rastra Bank. According to the results obtained from the

survey, by the end of the financial year 2079/80, the balance of total foreign direct investment in Nepal increased by 11.8 percent and remained at 2 trillion 95 billion 500 million. Out of the total foreign investment, the share of paid-up capital is 52.8 percent, reserves are 33.7 percent, and the share of loans is 13.5 percent.

Similarly, by the end of June 2080, 58 countries have direct foreign investment in Nepal. Of which, the highest amount from India is 1.3 billion 450 million (35 percent) and then 35.46 billion (12 percent) from China, 22.62 billion (7.7 percent) from Ireland, 19.6 billion (6.4 percent) from Australia percent) and 18.81 billion (six.four percent) direct foreign investment from Singapore.

Of the foreign direct investment in Nepal, 59.7 percent is in the industrial sector and 40.2 percent is in the service sector. Under the industrial sector, 30 percent of foreign investment is in the hydropower sector and 29.4 percent in the manufacturing sector. 26 percent of the total foreign direct investment is in banks and financial institutions and insurance companies under the service sector.

On a provincial basis, Bagmati province has the highest direct investment in Nepal at 59.7 percent, followed by Gandaki province with 15.1 percent, Koshi province with 14.7 percent, and Madhesh province with 8.8 percent. According to the Central Bank, foreign direct investment in Lumbini, Karnali and Far West provinces is less than one percent.

It has been found that the capacity utilization of manufacturing companies operated by foreign investment is 60.69 percent. Return on Equity It is found that it is about 11.61 percent.