Kathmandu, April 23: The stock of the foreign direct investment (FDI) in Nepal has decreased by 8.8% at the end of the fiscal year 2018/2019.
According to the latest survey report by the Nepal Rastra Bank, the country’s FDI stood at Rs.182.92 billion during the period. The report shows that Nepal received foreign investment from 53 different economies as of mid-July 2019. In terms of total FDI stock, India ranks top position with Rs.56.05 billion followed by China, Saint Kitts and Nevis, Ireland, and Singapore with Rs.27.56 billion, Rs.24.94 billion, Rs.11.59 billion and Rs.8.73 billion respectively.
The report informs that the service sector accounts for 51.1% of total FDI stock. Within the service sector; financial intermediation and communication sector accounted for 27.4% and 14.5% of the FDI stock respectively, according to the report.
As per the central bank survey report, paid-up capital is the major component in FDI stock as it accounted for 48.2% of total FDI stock where the reserves and loans in total FDI stock accounted for 42.8% and 9.0% respectively.
The report, meanwhile, shows that the industrial sector accounts for 48.8% of total FDI stock. Within the industrial sector, manufacturing, mining and quarrying industry and electricity, gas and water sector accounted for 28.6% and 20.0 percent of total FDI stock respectively.
