Nepalis may be allowed to invest up to $10m abroad

KATHMANDU, MAY 19 -

The government has prepared a draft of the new Foreign Investment Policy 2013 that envisions allowing Nepalis to invest abroad .

Responding to the long-standing demand of Nepali business community, the draft policy seeks to allow Nepalis to invest up to $10 million abroad after acquiring the Nepal Rastra Bank’s (NRB) approval.

The Foreign Investme-nt Policy 1992 is mum over establishment of any profit-oriented enterprises abroad by Nepalis.

The draft policy states the threshold of the foreign invest ment could be increased gradually based on invest ors’ capacity. “The NRB will fix the necessary working procedure in this regard,” states the draft. It says Nepalis will be allowed to open branch, sub-branch or contact offices abroad to expand their invest ment or business after getting NRB approval.

The draft, however, is silent on invest ments made abroad by Nepalis until now. It is an open secret that many Nepali businessmen have

invest ed abroad defying the existing Act that bars Nepalis from invest ing abroad .

The draft says invest ors should submit annual reports to NRB about production, sales, profit, tax payment and re invest ment abroad . The Ministry of Industry is gearing up to introduce the new policy within the next fiscal year.

Industrialist Diwakar Golchha hailed the proposed policy, saying it will boost Nepali invest ors’ confidence and will contribute more to the government’s revenue.

Source: The Kathmandu Post