Firms with FDI repatriate Rs 10.07bn dividends

Firms with foreign direct investment repatriated Rs 10.07bn in fiscal year 2023/24. This represents a decline of 27.23 percent compared to fiscal year 2021/22, when foreign investors repatriated Rs 13.84bn.

According to Foreign Investment in Nepal-2024, published by the Department of Industry (DoI), 86.7 percent of the dividend in 2023/24, or Rs 9.34bn, was repatriated by investors in the manufacturing sector. Twenty manufacturing industries with FDI repatriated dividends during the year. Likewise, foreign investors in eight energy sector companies took home Rs 367.6m.

The report states that the number of manufacturing industries repatriating dividends reached 43, up from 41 in the previous fiscal year. Since a lion's share of FDI in Nepal is in the manufacturing sector, it tops the list of sectors in terms of dividend repatriation.

Eight service sector industries and five tourism firms reported Rs 277.91m and Rs 55.45m in dividends in the review year. In 2022/23, ten service firms repatriated Rs 1.12bn, while six tourism firms sent back Rs 81.34m.

Firms in the infrastructure and mineral sectors did not make any dividend repatriations this year, according to the report. In 2022/23, one infrastructure firm had repatriated Rs 19.89m.

The report states that agricultural firms have repatriated dividends for the first time in three years. Rijal Tashi Industries, which has FDI from Bhutan, repatriated Rs 25m in 2023/24.

Dividend repatriation by investors in the IT sector fell significantly to Rs 9.3m in the current fiscal year.

In fiscal year 2022/23, investors in the manufacturing sector repatriated Rs 8.80bn, followed by the ICT sector, with Rs 3.67bn in dividends repatriated.

In FY 2021/22, foreign investors repatriated Rs 13.68bn in dividends. Manufacturing sector investors took back Rs 8.63bn that year, while those in the ICT sector repatriated Rs 4.80bn. During the year, 38 firms with foreign investment repatriated dividends, according to the report.

Dabur Nepal and Unilever are among the manufacturing companies that repatriated high dividends during fiscal year 2023/24. Asian Paints, Berger, and KNP Nerolac also repatriated significant dividends during the review year, according to an official from the DoI.

Likewise, firms sent abroad Rs 2.79bn in royalties in the first eight months of fiscal year 2023/24. According to the report, 115 manufacturing firms sent Rs 2.47bn, followed by tourism and energy-based firms, which sent Rs 129.97m and Rs 123.18m, respectively.