Kathmandu: The government has announced plans to develop Nepal as a prime destination for foreign direct investment (FDI). A double taxation avoidance agreement will be established with countries willing to invest.
According to National News Agency Nepal, this announcement was made during the budget speech by Finance Minister Bishnu Prasad Poudel at the joint session of the federal parliaments on Thursday. The government aims to simplify procedures for bringing in foreign investment and returning profits. Additionally, a policy of anchor investment will be adopted to prioritize foreign investment as a national priority.
Deputy Prime Minister and Finance Minister Poudel, while presenting the budget for the fiscal year 2025/026, stated that companies constructing industrial estates will receive facilities similar to those provided to hydropower companies and special economic zones. These industries will benefit from a 50 percent discount on monthly fares.
The government has allocated Rs 1.55 billion for the construction of industrial infrastructures. In an effort to reduce pollution in the Kathmandu Valley, industries currently operating there will be relocated outside the valley and will be provided land free of cost.
Legal reforms will continue to support public-private partnerships, and an automated single point service center will be set up under the Investment Board. Viability gap funding will be managed to attract investment in priority areas, as highlighted in the budget speech.