KATHMANDU, July 13: Foreign investors repatriated Rs 6.12 billion to their home country in the first 10 months of Fiscal Year 2015/16.
According to Nepal Rastra Bank (NRB), foreign investors received dividend payment of Rs 6.12 billion in the review period, compared to Rs 7.21 million in 2014/15.
Foreign Direct Investment (FDI) companies, which have invested in hydropower sector, took away the highest dividend payment in the review period.
The repatriation of the dividend in the hydropower sector alone in the review period stands at Rs 3.15 billion, compared to the annual dividend payment of Rs 3.87 billion in 2014/15. Similarly, the central bank has approved dividend payment of Rs 1.69 billion for FDI companies involved in communication sector. Foreign firms involved in communication sector had received dividend payment of Rs 4 million in the last fiscal year.
Repatriation of dividend payment by FDI companies involved in manufacturing and industries went down to Rs 1.27 billion in the first ten months of the current fiscal year, down from annual dividend payment of Rs 2.3 billion in the last fiscal year.
Observers say that the repatriation of annual dividend payment is likely to be higher this year compared to the last fiscal year as many companies distribute dividend at the end of the fiscal year. The rising volume of dividend payments to foreign companies also indicates that joint ventures with foreign companies are performing better in Nepal, particularly in hydropower and communication sector, they added.
Foreign companies having investment in Nepal's financial sector has received Rs 8.3 million in dividend payment in the 10-month period of 2015/16, compared to annual dividend payment of Rs 1.79 billion in the last fiscal year.
Dividend payment was less in the financial sector in this fiscal year apparently due to the central bank's restriction to distribute dividend to foreign companies that are non-banking or non-financial entity.
The repatriation of the dividend payment is higher than the total flow of foreign direct investment into the country. According to the central bank, the country received a total of Rs 4.64 billion foreign direct investment in the review period, up from Rs 3.05 billion in the corresponding period last year.
Meanwhile, the gross foreign exchange reserves reached a record high of Rs 1,013.44 billion at mid-May 2016, an increase of 23 percent from Rs 824.06 billion in mid-July 2015.
Foreign investors repatriate Rs 11 billion in dividends and roy...
