NRB Survey Report reveals 16% surge in Foreign Direct Investment in Nepal in FY 2078/79

KATHMANDU: The Nepal Rastra Bank (NRB) has released a comprehensive survey report on foreign direct investment for the fiscal year 2078/79.

The report, authored by the Economic Research Department of the central bank, aims to inform policy formulation by analyzing sectoral conditions and investment trends.

NRB prepared the report based on data and details collected from a sample of 231 companies engaged in direct foreign investment in Nepal during the fiscal year 2078/79.

According to the findings, foreign direct investment in Nepal increased by 16% by the end of the fiscal year 2078/79, reaching a total of NPR 264.33 billion. The NRB’s breakdown of foreign investment composition reveals that paid-up capital constitutes 53.7%, reserves 31.7%, and loans 14.6%.

As of Ashadh 2079, Nepal has attracted foreign direct investments from 57 countries, with the highest coming from India at NPR 88.59 billion, followed by China at NPR 33.45 billion, Ireland at NPR 20.90 billion, Singapore at NPR 16.7 billion, and Saint Kitts and Nevis at NPR 15.9 billion.

The industrial sector accounts for 62.6% of foreign direct investment, while the service sector makes up 37.3%. Within the industrial sector, hydropower attracts 32.8% of foreign investment, followed by the manufacturing sector at 29.5%. In the service sector, 25.6% of total foreign direct investment goes to banks, financial institutions, and insurance companies.

The NRB’s report also highlights that manufacturing companies with foreign investments operate at a capacity utilization rate of 71.1%, and the overall profit rate for these companies stands at approximately 14.3%.