25th October 2024, Kathmandu
Nepal’s Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel, has extended an invitation to members of the US Chamber of Commerce to invest in Nepal’s growing information technology (IT) sector.
Nepal IT Sector Investment 2024
Paudel, currently in Washington D.C. to attend the World Bank Group and International Monetary Fund (IMF) annual meetings, made this request during a roundtable meeting with representatives of the US Chamber of Commerce.
Highlighting Nepal’s cost-effective and skilled IT workforce compared to other countries, Paudel emphasized that the government has created a favorable investment environment by implementing legal and procedural reforms. He informed the US business leaders that, in Nepal, companies can be established for as low as one dollar, and the government offers a 50% income tax exemption for up to five years for companies in the IT sector. Paudel encouraged American businesses to capitalize on these policies and expand their investments in Nepal’s IT industry.
Atul Keshap, Senior Vice President for South Asia at the US Chamber of Commerce, expressed interest, noting that dozens of American companies are eager to invest in Nepal. He praised Nepal’s recent reforms, including the improvement of about a dozen investment-related laws, sovereign credit ratings, and the formation of a high-level Economic Reform Advisory Commission. According to Keshap, these efforts contribute significantly to creating a business-friendly environment in Nepal.
Chandra Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), also underscored the opportunities and favorable conditions for investment in Nepal. He urged American entrepreneurs to explore investment prospects in Nepal and take advantage of the favorable environment.
During the same day, Deputy Prime Minister Paudel held a meeting with IMF Deputy Managing Director Bo Li. Paudel acknowledged the IMF’s contributions to Nepal’s economic development through concessional loan facilities, policy advice, and capacity-building programs. He expressed optimism that the IMF would continue to support Nepal’s economic growth in the future.
Paudel highlighted that assessments by institutions like the IMF show positive improvements in Nepal’s economy, and the government plans to continue focusing on economic reforms while considering the IMF’s recommendations.
In addition, Paudel also met with Millennium Challenge Corporation (MCC) CEO Alice Albright and Vice President Cameron Alford. They discussed the progress of ongoing MCC projects in Nepal and explored possibilities for further financial assistance.
Why Invest in Nepal’s IT Sector?
Nepal offers unique opportunities for American companies investing in its IT sector. Some of the key advantages include:
Affordable Skilled Workforce: Nepal provides a cost-effective, highly skilled IT workforce compared to other nations, making it an attractive destination for outsourcing and technology-based investments.
Business-Friendly Policies: Recent reforms have simplified starting an IT company, with minimal setup costs and significant tax incentives.
Government Support: The Nepalese government actively promotes foreign investment in IT through regulatory reforms and tax benefits, making the country a promising hub for technology growth in South Asia.
Investing in Nepal’s IT sector aligns with the country’s vision for digital transformation and global competitiveness, creating opportunities for American companies to tap into a burgeoning market.
For US investors looking to diversify their portfolio and expand in Asia, Nepal presents a viable destination with untapped potential in the tech industry.
For more: Nepal IT Sector Investment 2024