Aug 30, Kathmandu- Nepal Rastra Bank has published 'Survey Report on Foreign Direct Investment, 2079/80'.

In order to assist in policy making by analyzing the sectoral conditions and trends of foreign direct investment, Rastra Bank has been publishing a report after completing an on-site survey every financial year.

According to the Rastra Bank, a survey report on foreign direct investment, 2079/80, has been prepared based on the analysis of the data and other details obtained from the survey by selecting a sample of 238 companies from the companies operating under foreign direct investment in Nepal in the fiscal year 2079/80.

According to the results of the survey, by the end of the financial year 2079/80, the balance of total foreign direct investment in Nepal has increased by 11.8 percent and remained at Rs.2 trillion 95.5 billion. Out of the total foreign investment, the share of paid-up capital is 52.8 percent, reserves are 33.7 percent, and the share of loans is 13.5 percent.

Similarly, by the end of June 2080, 58 countries have direct foreign investment in Nepal. Out of which, the highest amount from India is Rs. 103 billion 450 million (35 percent) and then from China Rs. 35 billion 460 million (12 percent), 2 billion 262 million rupees (seven.7 percent) from Ireland, 19 billion 60 million rupees (6.4 percent) from Australia and 18.81 billion rupees (6.4 percent) from Singapore.

Of the foreign direct investment in Nepal, 59.7 percent is in the industrial sector and 40.2 percent is in the service sector. Under the industrial sector, 30 percent of foreign investment is in the hydropower sector and 29.4 percent in the manufacturing sector. 26 percent of the total foreign direct investment is in banks and financial institutions and insurance companies under the service sector.

On a provincial basis, Bagmati province has the highest direct investment in Nepal at 59.7 percent, followed by Gandaki province with 15.1 percent, Koshi province with 14.7 percent, and Madhesh province with 8.8 percent. According to the Central Bank, foreign direct investment in Lumbini, Karnali and Far West provinces is less than one percent.

It has been found that the capacity utilization of manufacturing companies operated by foreign investment is 60.69 percent. The return on equity is found to be around 11.61 percent.