Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a landmark move, the government of Nepal has announced that Nepali industries will be allowed to invest abroad, as revealed by Finance Minister Bishnu Prasad Paudel during the budget speech for the fiscal year 2082/83 (2025/26) in a joint session of the Federal Parliament today at 3 PM. The policy permits Nepali exporters to invest up to 25% of their total export earnings in foreign markets.
“Exporters will be allowed to invest up to 25% of their export earnings abroad to establish processing factories for goods sold or semi-processed materials exported from Nepal,” Minister Paudel declared. He added that 50% of the profits earned from these foreign investments must be repatriated to Nepal. The Investment Board Nepal will oversee the approval process for such investments.
Until now, Nepali businesses faced restrictions on foreign investments. However, the government recently introduced an ordinance allowing IT companies to invest abroad, paving the way for this broader policy shift. The new measure is expected to enhance Nepal’s global economic footprint, particularly in processing and manufacturing sectors, while ensuring a portion of the profits contributes to the domestic economy.
This announcement aligns with the government’s broader strategy to promote economic growth and attract private sector participation, as outlined in the 2082/83 budget, which emphasizes infrastructure development and fiscal reforms.
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