Executive Summary
1. Nepal Rastra Bank (NRB) conducted this survey with primary objective to compile the stock of foreign direct investment (FDI) in Nepal at the end of fiscal year (FY) 2018/19. The report presents the information on FDI stock comprising three components: paid-up capital, reserves and direct loans from foreign direct investors.
2. The survey shows stock of FDI in Nepal decreased by 8.8 percent to Rs.182.92 billion at the end of 2018/19. Paid-up capital is the major component in FDI stock as it accounted for 48.2 percent of total FDI stock where the reserves and loans in total FDI stock accounted for 42.8 percent and 9.0 percent respectively.
3. Nepal has 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.
4. Service sector accounts for 51.1 percent of total FDI stock. Within the service sector; financial intermediation and communication sector accounted for 27.4 percent and 14.5 percent of the FDI stock respectively. 5. Industrial sector accounts for 48.8 percent of total FDI stock. Within industrial sector, manufacturing, mining and quarrying industry and electricity, gas and water sector accounted for 28.6 percent and 20.0 percent of total FDI stock respectively.
Survey Report on Foreign Direct Investment in Nepal (NRB Economic Research Department)
