DPM Paudel urges US investors to invest in Nepal's IT sector

 Kathmandu, Oct. 25

Deputy Prime Minister and Finance Minister of Nepal, Bishnu Prasad Paudel, has urged the US Chamber of Commerce to consider investing in Nepal's information technology (IT) sector.

DPM Paudel made this appeal during a roundtable discussion with US business representatives held in Washington DC, USA on Thursday. He is in the USA to attend the annual meeting of the World Bank Group and International Monetary Fund.

He said to the US businesspersons that compared to other countries, Nepal offers affordable and skilled IT professionals, making it a competitive investment destination, according to the Secretariat of DPM Paudel. Emphasising that recent legal and procedural reforms have fostered a conducive environment for investors, he encouraged US businesses and investors to leverage these opportunities.

Informing the government’s policy to allow companies to set up in the IT sector with minimal capital (just US$ 1) and offering a 50 per cent tax break for the first five years, he appealed for increased US investment in this promising industry.

Speaking at the meeting, Senior Vice-President for South Asia at the US Chamber of Commerce, Atul Keshap, said that dozens of American companies are keen to invest in Nepal. He commended Nepal’s recent investment-related legal reforms, initiation for a sovereign credit rating, and formation of a high-level Economic Reform Advisory Commission, which he said contribute to a positive business climate.

President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, also highlighted Nepal’s promising investment environment and encouraged American entrepreneurs to expand their businesses in Nepal to reap benefits.

According to a statement issued by the FNCCI on Friday, Dhakal said that in the past three decades, the market growth, duty-free access to developed countries like India, and energy purchase and sale agreements have made Nepal an attractive destination for foreign investors.

He also informed American investors about the immense potential in hydropower due to the 10,000 MW power purchase agreement with India and the recent understanding with Bangladesh.

"Stating that Nepal's blend of nature and culture attracts tourists, President Dhakal invited investors to invest in tourism infrastructure. He highlighted the potential to develop hill stations with a cool and healthy environment within a two-hour distance from the Indian border, which has the world's largest population," read the FNCCI statement.

Representatives from the US Chamber of Commerce attending the event expressed their interest in investing across various sectors in Nepal, including IT, read the statement.

Later on Thursday, DPM Paudel met with IMF Deputy Managing Director Bo Li where he expressed appreciation for the IMF’s support of Nepal’s economic development through concessional loans, policy advice, and capacity-building initiatives. He said that the IMF’s assessments have reflected improvements in Nepal’s economy, and he committed to advancing economic reforms in line with IMF recommendations.

Likewise, DPM Paudel also met with Millennium Challenge Corporation (MCC)'s CEO Alice Albright and Vice-President Cameron Alford. Discussions with them were focused on the latest progress in MCC project implementation in Nepal and possibilities for further financial support.

 Published in The Rising Nepal daily on 26 October 2024.