By the close of the fiscal year 2022/23, Nepal's foreign direct investment (FDI) had surpassed Rs 295.5 billion, reflecting an 11.8 percent increase compared to the previous year. Nepal Rastra Bank (NRB) revealed this in its Survey Report on Foreign Direct Investment, 2022/23, released on Friday.

The report indicates that a sample of 238 companies was surveyed. Of the total foreign investment, 52.8 percent was in the form of 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. The highest amount, Rs 103.45 billion (35%), came 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.

Of the total FDI flowing into the country, 59.7 percent was directed toward the industrial sector, while 40.2 percent went to the service sector. Within the industrial sector, 30 percent of the investment was in the hydropower sector, and 29.4 percent was in the production sector.

The banking, finance, and insurance companies operating under the service sector accounted for 26 percent of the total investment.

According to province-wise data, Bagmati Province received 59.7 percent of the total FDI, followed by 15 percent in Gandaki, 14.7 percent in Koshi, 8.8 percent in Madhesh, and less than one percent in Lumbini, Karnali, and Sudurpaschim provinces.

The capacity utilization of FDI-based manufacturing companies stands at 60.69 percent, with a return on equity of around 11.61 percent. -- RSS