Nepal to be developed as FDI destination

Kathmandu, May 29: The government has announced plans to develop Nepal as the best destination for foreign direct investment (FDI).

Double taxation avoidance agreement would be made with the countries that are ready to make investments. Such an announcement was made during the budget speech the Finance Minister made in the joint session of the federal parliaments on Thursday. For this to happen, the procedure to bring in foreign investment and the return of profit would be made easier.

A policy of anchor investment would be adopted to protect foreign investment as a national priority. Presenting the budget for the fiscal year, 2025/026, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel announced, “The companies that construct industrial estate will be provided facilities equal to hydropower producing companies, and special economic zones. Such industries will be provided a 50 percent discount on the monthly fare.”

The Minister has allocated Rs 1.55 billion for the construction of industrial infrastructure. “The industries being operated in the Kathmandu Valley will be shifted outside the valley in a bid to encourage pollution reduction in the Kathmandu Valley.

Such industries will be provided land free of cost outside,” he shared. Legal reform will be continued for public-private partnership, an automated single point service center set up under the Investment Board, and viability gap funding managed to attract investment in priority areas, according to the budget speech.