Nepal’s FDI rise11.8%: FY22/23 On Top Service and Industrial

Nepal’s Foreign Direct Investment (FDI) stock grew by 11.8% to Rs. 295.50 billion by the end of FY 2022/23, reflecting successful efforts to attract foreign capital and boost economic growth. Key findings from the Nepal Rastra Bank (NRB) survey show that paid-up capital is the largest component of FDI, making up 52.8% of the total, with reserves and loans at 33.7% and 13.5%, respectively.

The industrial sector holds the majority of FDI at 59.7%, with electricity and manufacturing leading. The service sector holds 40.2% of FDI, primarily in financial services, information and communication, and accommodation. India is the top investor with Rs. 103.5 billion, followed by China, Ireland, Australia, and Singapore.

Outstanding foreign loans, mostly in the hydropower sector, total Rs. 60.3 billion. Manufacturing FDI enterprises have a capacity utilization of 60.69% and an average profitability of 11.61%. The ongoing legal and institutional reforms aim to further enhance Nepal’s appeal to foreign investors, promoting sustained economic growth and development.

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