Nepal moves to cut ‘Red Tape’ as IBN fast-tracks one-stop service centre to rebuild global investor confidence

KATHMANDU: In a decisive move aimed at reshaping Nepal’s global investment image, the Investment Board Nepal (IBN) has initiated concrete steps to operationalise a One-Stop Service Centre (OSSC), a long-awaited reform designed to reduce bureaucratic hurdles and restore confidence among cautious international investors.

At a time when global capital is increasingly selective and risk-sensitive, Nepal’s effort to streamline approvals and coordination across government agencies is being viewed as a strategic shift to make the country more competitive in the regional investment landscape.

Coordinated Government Machinery for Investors

To ensure seamless inter-agency coordination, 14 key government bodies have officially designated empowered focal persons to work directly with the OSSC. The centre will be coordinated by Joint Secretary Hemraj Tamang of the Investment Board.

Focal persons have been appointed from major regulatory and service-delivery institutions, including the Ministry of Land Management, Cooperatives and Poverty Alleviation, Ministry of Physical Infrastructure and Transport, Ministry of Forests and Environment, Nepal Rastra Bank, Department of Immigration, Inland Revenue Department, Department of Industry, Department of Mines and Geology, Department of Customs, Department of Labour and Occupational Safety, Department of Electricity Development, Office of the Company Registrar, and the Nepal Telecommunications Authority.

This institutional alignment signals a shift from fragmented governance to a single-window facilitation model, directly addressing one of the biggest complaints of foreign investors: procedural complexity.

A Signal to Global Capital Markets

For international investors evaluating frontier and emerging markets, predictability and speed of decision-making are as critical as tax incentives. Nepal has long struggled with a reputation for slow approvals, overlapping jurisdictions, and policy uncertainty.

By activating the OSSC, Nepal is attempting to reposition itself as a reform-oriented destination for foreign direct investment (FDI), particularly in hydropower, infrastructure, tourism, information technology, and manufacturing.

IBN Chief Executive Officer Sushil Gyawali stated that once the new office is fully managed and the operating procedure is finalised, services will be delivered from a single location with a strong emphasis on automation and digital systems. He stressed that technology-driven governance is essential to modern investment facilitation.

Learning from Regional Competitors

Countries competing with Nepal for foreign capital, such as India, Vietnam, and Bangladesh, have already institutionalised single-window clearance systems. Their experiences show that simplified approval mechanisms significantly improve global investor rankings and project execution timelines.

Nepal’s move is therefore not merely administrative reform but a strategic economic repositioning to align with international best practices in investment governance.

Institutional Accountability Through Focal Persons

Under the new mechanism, focal persons will act as single points of contact within their respective agencies. They will be responsible for fast-tracking files recommended by the Investment Board, ensuring timely responses, and bridging communication gaps between ministries and the Board.

According to Joint Secretary Tamang, their role is anchored in the Public-Private Partnership and Investment Act 2019, Investment Rules 2020, and the Board’s strategic business plan. This gives the OSSC a firm legal and institutional foundation rather than remaining a symbolic reform.

Restoring Confidence After Setbacks

The reform comes at a sensitive time. Recent political instability and disruptions have made foreign investors cautious about Nepal’s governance capacity.

By strengthening coordination and accountability, the government is attempting to reassure global markets that Nepal is serious about improving the investment climate.

Investment governance expert Ram Krishna Sapkota noted that dealing with multiple agencies has historically discouraged investors. The OSSC, if implemented effectively, could significantly reduce transaction costs and project delays.

From Policy Promise to Investor Reality

While Nepal has announced investor-friendly policies in the past, weak execution has undermined credibility. The OSSC represents an opportunity to convert reform rhetoric into measurable institutional change.

For tentative global investors assessing South Asia’s next growth frontiers, Nepal’s success will depend not on announcements but on how quickly projects move from approval to implementation.

If effectively executed, the One-Stop Service Centre could mark a turning point in Nepal’s long struggle to transform bureaucratic complexity into investor confidence—repositioning the country as a serious contender for global capital in an increasingly competitive emerging market landscape.