January 31: The contribution of Foreign Direct Investment (FDI) to the Gross Domestic Product (GDP) of the country is found to be less than one percent, according to a government study.

A recent study report released by the Policy Research Institute states that the contribution of foreign direct investment to the GDP is 0.54 percent.

Among the SAARC countries, the Maldives tops the list of beneficiaries to be benefit from FDI in GDP. Foreign direct investment accounts for 17.5 percent of the GDP in the Maldives.

India is second on the list, with 1.76 percent share of foreign investment to its GDP. Similarly, FDI contributes 0.80 percent to Pakistan's GDP, 0.63 percent to Bangladesh and 0.54 percent to Nepal's GDP.

India has the largest share of foreign investment in Nepal. It has made an investment of Rs 56 billion and holds 31 percent share of foreign investment in the country. China is the second largest investor with an investment of Rs 27.56 billion and Saint Kitts and Nevis, a Caribbean country, is the third largest investor with Rs 24.94 billion investment.

The country has received FDI worth Rs 11.93 billion from Ireland, Rs 8.72 billion from Singapore, Rs 7.63 billion from Australia, Rs 6.85 billion from the UAE, Rs 5.11 billion from Bangladesh, Rs 4.47 billion from South Korea and Rs 4.47 billion from the United States.

Nepal has received Rs 182 billion in foreign investment until July 2019. Of Rs 196 billion FDI received in 2019/20, Rs 16.07 billion has been in the field of hydropower and irrigation.

The study shows that about 82 percent of the foreign investment received is directed towards energy, gas and irrigation projects. Likewise, seven percent investment has been made in the transport storage and communication sector and 11 percent in the rest.

Bagmati Province has received 65.5 per cent FDI, Gandaki and Madhes have received 14 per cent each and the rest ten per cent has been received by Lumbini, Karnali and Far-Western provinces.