Nepal hosts FDI from 58 countries

By TRN Online, Kathmandu, Aug 30: Nepal has received foreign investment from as many as 58 countries, according to the NRB survey report on FDI in Nepal 2022/023.

"Nepal has received foreign investment from 58 different countries as of mid-July 2023. In terms of total FDI stock, India ranks top position with Rs.103.5 billion followed by China (Rs.35.5 billion), Ireland (Rs.22.6 billion), Australia (Rs.19.1 billion), and Singapore (Rs.18.8 billion)," read the report summary issued today.

Out of 754 active enterprises that had obtained FDI approvals from NRB till 2022/23, 238 enterprises responded to the survey.

"The survey results show that the stock of FDI in Nepal increased by 11.8 percent to Rs.295.50 billion at the end of 2022/23. Paid-up capital is the major component in FDI stock as it accounts for 52.8 percent of total FDI stock whereas the reserves and loans in total FDI stock account for 33.7 percent and 13.5 percent respectively," read the report summary.

Electricity, gas, steam, and air conditioning sector stands the highest with 30 percent of total FDI stock, followed by the manufacturing sector with 29.4 percent. Both are included in the industrial sector which accounts for 59.7 percent of total FDI stock, according to the report.

About 40.2 percent of total FDI stock is in the service sector. Of which, the financial and insurance services sector constitutes 26 percent, information and communication sector 6.7 percent, and the accommodation and food services sector 6.3 percent of the total FDI stock.

As of mid-July 2023, the outstanding foreign loans (excluding direct loans from foreign direct investors) of FDI enterprises stood at Rs.60.3 billion. The enterprises in the hydropower sector have utilized most foreign loans as the outstanding loan of this sector stood at Rs.29.3 billion in mid-July 2023, read the report.

The capacity utilization of surveyed FDI enterprises in manufacturing stands at 60.69 percent, whereas the profitability of surveyed FDI enterprises remains at 11.61 percent in 2022/23.