Kathmandu – The Government of Nepal, in its budget for fiscal year 2082/83, has made a strategic move to position Nepali enterprises in the global market by allowing outbound investment and overseas expansion. Provisions under points 79 and 80 of the budget highlight Nepal’s commitment to fostering a competitive, export-oriented economy through liberal investment policies.
Investment Board Nepal Strengthening and Pipeline Projects
To accelerate large-scale investments and enhance institutional capabilities, the government has allocated NPR 740 million to the Investment Board Nepal (IBN). This includes the development of institutional capacity and implementation of projects in collaboration with the private sector, totaling NPR 7 trillion in value, with project preparation works initiated for NPR 4 trillion worth of projects.
Legal Framework for Nepali Outbound Investments
A major shift in the fiscal policy is the approval for Nepali companies to establish branches, subsidiaries, or processing units abroad for the purpose of exporting semi-processed goods. These entities will be allowed to invest up to 25% of their annual foreign exchange earnings. Furthermore, 50% of the net profit earned abroad must be repatriated to Nepal, strengthening foreign reserves and domestic reinvestment. This progressive framework aims to integrate Nepal’s industrial base into global value chains and empower domestic firms to compete internationally. The emphasis on both capacity building and outbound engagement reflects Nepal’s dual strategy to attract FDI while enabling domestic champions to scale abroad. The Investment Board will be responsible for regulating and approving such outbound investments, ensuring transparency and alignment with national priorities.
