Nepal’s IT Sector Shows Strong Momentum as Policy Reforms Deliver Results: NRB Governor

Governor of Nepal Rastra Bank, Dr. Biswo Poudel, has stated that Nepal’s information technology sector is witnessing encouraging growth, driven by sustained efforts and key policy reforms implemented in recent years.

In a social media post, Governor Poudel highlighted that measures taken by the government—such as simplifying company registration processes, revising foreign direct investment (FDI) thresholds, and ensuring greater predictability in tax rates—are beginning to yield tangible outcomes. He noted that while only around 40 IT companies were operating with foreign investment two years ago, the number surged to nearly 400 within a year, indicating rising investor confidence in Nepal’s digital ecosystem.

Governor Poudel also pointed to recent regulatory changes by Nepal Rastra Bank aimed at facilitating outward investment. Under the revised provisions, Nepali exporting companies are now allowed to invest up to USD 1 million abroad, while non-exporting firms can invest up to USD 20,000. He emphasized that revisiting these limits was essential to build trust among investors, particularly in response to concerns raised by foreign investors regarding excessive procedural requirements.

Addressing the impact of restrictive foreign investment policies introduced in 2021, Governor Poudel acknowledged their long-term effects on the investment climate. However, he stressed that recent reforms are intended to restore confidence and support business expansion, including enabling profit repatriation with central bank approval.

Calling on young entrepreneurs, Governor Poudel urged them to innovate, develop new products, and compete in global markets. He reaffirmed that Nepal Rastra Bank and the banking sector remain committed to supporting businesses as they scale and expand internationally, underscoring that products developed in Nepal have the potential to reach markets worldwide.