Kathmandu: By the end of the fiscal year 2079-80 BS (2022-23), Nepal's total foreign direct investment (FDI) inflow exceeded Rs 295.5 billion, marking an 11.8 percent increase compared to the previous year. This was revealed in the Survey Report on Foreign Direct Investment, 2022-23 published by the Nepal Rastra Bank (NRB) on Friday.

The survey, which sampled 238 companies, highlighted that of the total FDI, 52.8 percent was in the form of paid-up capital, 33.7 percent as reserves, and 13.5 percent as loans.

As of mid-July 2023, Nepal had received FDI from 58 countries, with India being the largest investor, contributing Rs 103.45 billion (35%). This was followed by China with Rs 35.46 billion (12%), Ireland with Rs 22.62 billion (7.7%), Australia with Rs 19.06 billion (6.4%), and Singapore with Rs 18.81 billion (6.4%).

Sector-wise, the industrial sector accounted for 59.7 percent of the total FDI, with 30 percent invested in hydropower and 29.4 percent in manufacturing. The service sector, comprising banks, finance, and insurance companies, made up 40.2 percent of the total FDI, with a 26 percent share.

Province-wise, Bagmati Province attracted the lion’s share of FDI at 59.7 percent, followed by 15 percent in Gandaki, 14.7 percent in Koshi, and 8.8 percent in Madhesh. Lumbini, Karnali, and Sudurpaschim provinces collectively received less than one percent of the total FDI.

The survey also noted that the capacity utilization of FDI-based manufacturing companies in Nepal stands at 60.69 percent, with a Return on Equity (ROE) of approximately 11.61 percent.