Among the industries with foreign investment in Nepal, those in the manufacturing sector continue to take back the highest dividends. Statistics from the Department of Industry indicate that this trend persisted in the last fiscal year (FY) 2023/24, with the energy sector following closely in second place.

In FY 2023/24, foreign investors repatriated a total of Rs 10.782 billion in dividends from Nepal. Of this, manufacturing industry investors withdrew Rs 9.34 billion, while those in the energy sector took back Rs 367.6 million.

The report titled "Foreign Investment in Nepal - 2024," published by the department, highlights the long-standing dominance of foreign companies investing in manufacturing projects regarding dividend repatriation. In FY 2022/23, foreign investors withdrew Rs 13.8448 billion in dividends, with the manufacturing sector leading at Rs 8.8 billion, followed by the information and communication technology sector at Rs 3.67 billion.

Similarly, in FY 2021/22, foreign investors repatriated Rs 13.6839 billion in dividends. Manufacturing sector investors withdrew Rs 8.63 billion, while those in the information and communication technology sector took Rs 4.8 billion. The number of projects and industries in these sectors is also relatively high. In FY 2023/24, the number of manufacturing industries repatriating dividends reached 43, up from 41 in FY 2022/23.

An official from the Department of Industry informed New Business Age that multinational firms such as Dabur Nepal and Unilever, part of the Fast-Moving Consumer Goods (FMCG) sector, have taken significant dividends. Other companies, including Asian Paint, Berger, and KNP, are also reported to be repatriating substantial amounts.

Shankar Singh Dhami, director of the Foreign Investment and Technology Transfer Branch, noted that there has been no significant change in the industry's dividend repatriation. Some companies withdraw dividends for one or two years within a single fiscal year.

Dhami also stated that the dividends of multinational companies investing in Nepal have remained consistent. "The profits of such companies have not decreased," he said, emphasizing that even during the COVID-19 pandemic, dividends did not significantly reduce. The ratio of profit to dividend repatriation seems stable.

For the first time in three years, agriculture and forest product-based industries in Nepal also repatriated dividends. An official of the department reported that Rijal Tasi Industries, which has Bhutanese investment, withdrew over Rs 25 million in dividends in FY 2023/24.