Govt announces plan to develop Nepal as best destination for FDI

KATHMANDU: The government has announced plans to develop Nepal as the best destination for foreign direct investment (FDI). A double taxation avoidance agreement will be made with countries that are ready to invest.

This announcement was made during the budget speech delivered by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel at the joint session of the Federal Parliament on Thursday.

For this to happen, the procedures for attracting foreign investment and repatriating profit will be made easier. A policy of anchor investment will be adopted to project foreign investment as a national priority.

Presenting the budget for fiscal year 2025/26, Deputy Prime Minister and Finance Minister Paudel announced, "The companies that construct industrial estates will be provided facilities equal to those provided to hydropower producing companies and special economic zones. Such industries will be provided with 50% discount on monthly fare."

The Minister has allocated Rs 1.55 billion for the construction of industrial infrastructure.

"The industries operating in the Kathmandu Valley will be shifted outside the valley in a bid to encourage pollution reduction. Such industries will be provided land free of cost outside," he said.

Legal reform will be continued for public-private partnerships, an automated single point service centre set up under the Investment Board, and viability gap funding managed to attract investment in priority areas, according to the budget speech.