British envoy calls for easier profit repatriation, as Nepal seeks FDI in tech sector

KATHMANDU: Nepal and the United Kingdom are moving forward to institutionalize their cooperation in the digital and information technology (IT) sector through the formation of a ‘Nepal–UK Digital Working Group’, aimed at attracting foreign direct investment (FDI) and promoting bilateral trade in the technology domain.

The announcement was made during the first edition of the Nepal–UK Tech Forum, held in London and hosted by the Embassy of Nepal in the UK. The event brought together more than 100 participants, including ambassadors, UK parliamentarians, government officials, business leaders, IT professionals, and academics from both nations.

British Ambassador to Nepal Rob Fenn emphasized the importance of creating a smooth and efficient profit repatriation mechanism to support and sustain foreign investment in Nepal. He noted that current processes to repatriate returns from investments are lengthy and complicated, potentially discouraging investors in high-growth sectors like IT and energy.

The proposed Nepal–UK Digital Working Group will include representatives from both embassies, policymakers, industry experts, and private sector leaders. It aims to institutionalize bilateral cooperation in emerging areas such as digital diplomacy, AI collaboration, IT exports, and direct foreign investments in Nepal’s tech ecosystem.

Nepal’s Ambassador to the UK, Dr. Chandra Kumar Ghimire, urged British investors to seize the opportunity in Nepal’s IT sector, highlighting the nation’s competitive human capital, improving investment climate, and evolving digital ecosystem. He underlined that while Nepal is known for youth outmigration, tens of thousands of IT graduates are now working remotely from Nepal, providing high-quality services globally.

“Many Nepali IT experts, trained abroad, are now returning and contributing to Nepal’s digital economy from home,” Ghimire said, positioning Nepal as an emerging digital outsourcing destination.

CEO of Nepal’s Investment Board, Sushil Bhatta, who participated in the event, reinforced Nepal’s readiness for FDI by outlining recent policy, legal, institutional, and procedural reforms. He presented Nepal’s roadmap for graduating from the Least Developed Country (LDC) category by 2030 and emphasized the need for sustainable investment to meet the country’s development goals.

Bhatta also highlighted Nepal’s ongoing efforts to finalize a Double Taxation Avoidance Agreement (DTAA) with the UK, which would further reassure foreign investors of a fair and structured investment regime.

The Tech Forum featured in-depth sessions on:

Nepal-UK tech trade potential

Artificial Intelligence (AI) cooperation

Digital diplomacy

Experience sharing from IT companies

Role of the Nepali diaspora in building the digital bridge

British MP and Chair of the All-Party Parliamentary Group for Nepal, Alex Baker, praised the forum’s launch and expressed optimism for deepening economic ties between the two countries.

Chairman of the UK-Nepal Chamber of Commerce, Dr. Kapil Rizal, joined 28 other speakers in discussing ways to strengthen the growing tech and trade relationship between Nepal and the UK.

The Embassy of Nepal in the UK, in its official statement, emphasized that British investors can play a catalytic role in enhancing Nepal’s IT exports and expanding FDI inflows into Nepal’s economy. Discussions also explored ways to expand Nepal’s digital service exports to the UK and other international markets.

As Nepal strives to modernize its economy and increase international investor confidence, particularly in the IT and renewable energy sectors, the creation of the Nepal–UK Digital Working Group is expected to serve as a strategic platform for continuous dialogue, reform, and collaboration.