Nepal Rastra Bank conduct a survey on Foreign Direct Investment (FDI) in Nepal. This survey presents the latest data of Foreign Direct Investment (FDI) stock based on survey of companies that have received FDI in Nepal. It provides the estimates of inward direct investment position or the FDI stock at book value as well as country-wise and sector-wise distribution of FDI stock at end of 2019/20.
The survey provides comprehensive information on face value of foreign liabilities of Nepalese companies arising on account of FDI. These statistics are used as inputs in the compilation of Balance of Payments (BoP) and International investment position (IIP).
The survey shows stock of FDI in Nepal increased by 8.5 percent to Rs.198.52 billion at the end of 2019/20. Paid-up capital is the major component in FDI stock as it accounted for 54.4 percent of total FDI stock whereas the reserves and loans in total FDI stock accounted for 33.8 percent and 11.8 percent respectively.
Industrial sector accounts for about 56.0 percent of total FDI stock. Within industrial sector, manufacturing, mining and quarrying industry constitutes 28.3 percent and electricity sector 27.5 percent of total FDI stock.
About 43.9 percent of total FDI stock is in service sector. Within the service sector; financial intermediation constitutes 27.3 percent and hotel & restaurant sector 6.0 percent of the total FDI stock.
The electricity generation sector, particularly hydropower sector in Nepal has been emerging as a preferred sector for FDI in recent year. The latest survey shows that 27.5 percent of FDI stock and 36.4 percent of total paid-up capital is in this sector. Moreover, hydropower sector has also attracted other sources of external financing such as foreign loans in addition to FDI.
The capacity utilization of FDI based manufacturing companies is constrained by COVID-19 pandemic while the profitability of FDI companies remained satisfactory in the review year.
(Source: NRB, 2021)
 in Nepal 2019-20){kind=link}
0 Comments