KATHMANDU: The government is set to permit Nepali industries to invest abroad.
In his budget speech on Thursday, Finance Minister Bishnu Paudel announced that Nepali exporters will be allowed to invest up to 25 percent of their total export earnings overseas.
“Permission will be granted to establish processing plants either abroad or in Nepal by exporting semi-processed goods. For this purpose, up to 25 percent of export income can be invested abroad,” he said.
Minister Poudel also stated that arrangements will be made to ensure that 50 percent of the profits earned from such foreign investments are repatriated to Nepal. The Investment Board will be responsible for approving these outbound investments.
Until now, Nepali citizens and companies have been prohibited from investing abroad. However, a recent ordinance has allowed IT companies to make overseas investments, signaling a shift in policy.
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