AmCham Nepal Meets Finance Minister: 8 Policy Reforms for FDI & Data Centers
19th January 2026, Kathmandu
In a strategic move to boost Nepal-US economic cooperation, a high-level delegation from the American Chamber of Commerce in Nepal (AmCham Nepal) recently held a pivotal meeting with Finance Minister Rameshwor Khanal.
AmCham Nepal Meets Finance Minister
The discussions focused on creating a more robust investment climate, particularly targeting the digital economy and foreign direct investment (FDI) framework.
Nepal as a Strategic Hub for Hyperscale Data Centers
One of the primary highlights of the meeting was Nepal’s potential to become a regional leader in digital infrastructure. AmCham Nepal pointed out that the country’s abundant clean hydropower and favorable cool climate make it a prime candidate for hyperscale data centers.
However, the delegation noted that several bottlenecks currently hinder large-scale global investments:
-
Lack of power supply stability.
-
The need for high-capacity, reliable cross-border connectivity.
-
Regulatory ambiguity regarding data sovereignty and specialized tech investments.
Advertisement
AmCham Nepal urged the government to develop an integrated policy framework to attract Nepalese and American tech giants to establish sustainable, green data centers in the country.
8 Key Policy Recommendations for Economic Growth
The delegation presented a comprehensive set of eight policy recommendations designed to simplify the ease of doing business and attract American capital:
| Policy Area | Key Recommendation |
| FDI Promotion | Formalize AmCham Nepal as an official partner to identify and promote “FDI-ready” projects. |
| Taxation & VAT | Resolve the VAT refund crisis by allowing commercial banks to handle verification letters. |
| Energy | Implement a One-Window System for solar energy VAT exemptions through the AEPC. |
| Digital Finance | Maintain a competitive market for national payment systems rather than a single-entity monopoly. |
| Connectivity | Enhance high-capacity digital infrastructure to support AI and high-performance computing. |
Solving the VAT Refund Bottleneck
A significant concern raised by the business leaders involved the current manual and cumbersome VAT refund process. Due to recent procedural changes at Nepal Rastra Bank (NRB), the Inland Revenue Department (IRD) has faced delays in verifying transactions.
AmCham suggested that empowering commercial banks to verify would immediately ease the cash flow for many businesses operating in Nepal.
Commitment from the Government
Finance Minister Rameshwor Khanal expressed a positive outlook on the suggestions provided by the AmCham team. He committed to coordinating with the Ministry of Communication and Information Technology and the NRB to address the regulatory hurdles.
The meeting concluded with a mutual agreement to strengthen the partnership between the government and the American private sector, ensuring that Nepal remains an attractive destination for high-value technology and energy investments.
For more: AmCham Nepal Meets Finance Minister
