BFIS invest only 11.8 % in construction sector

ShareSansar, November 21:

The banking and financial institutions have made up to 11.8 percent of their investment in the construction sector in the current fiscal year 2070/71.

The construction sector includes areas such as residential, non-residential and big construction projects.

According to statistics of Nepal Rastra Bank, of the total Rs 99.33 arba mobilized by the BFIs in the current fiscal year, Rs 9.63 arba has been channelized to the construction sector.

In the corresponding period of the last fiscal year, too, the BFIs had invested 11.7 percent of their total investment in the construction sector.

This clearly shows that the BFIs have not been able to increase their investment in the construction sector since the past few years.

The stakeholders say that the BFIs have not been able to invest in the sector since the construction sector, especially the expansion of infrastructure, remains stagnant.