KATHMANDU, September 10: Nepal held a stock of foreign direct investment (FDI) totaling Rs 198.52 billion as of last fiscal year end.
Unveiling the FDI survey report 2020/21 on Thursday, Nepal Rastra Bank (NRB) has shown that the FDI amount increased by 8.5 percent last fiscal year, compared to the previous year. The central bank;s finding is based on a study of 198 FDI-based companies operating in the country.
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Of the total FDI amount, 54.4 percent is paid-up capital, 33.8 percent is reserve and 11.8 percent is loan accepted by the companies. The NRB records show that there is an increase in the FDI stock in the country due to a rise in the paid-up capital of foreign investment companies by 22.6 percent last year.
Currently, Nepal has been mobilizing the capital of multinational companies from 52 countries. With a stake of Rs 62.45 billion, Indian companies’ investment is the largest among all. China stands at the second position, with an injection of a capital worth Rs 30.97 billion. Saint Kitts and Nevis, Ireland and Singapore are among the countries in the list in the category.
Of the total FDI amount, 56 percent is in the industrial sector including hydropower projects and manufacturing while 43.9 percent is in the service sector. The report shows that bank and financial institutions and insurance companies are among the main attractions of multinational companies. Around 27.3 percent of the FDI is being mobilized in BFIs and insurance companies.
