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clickmandu Khabarhub Nepal News English.MakaluKhabar.com
7 sources · 9 articles
Started 13 hours ago · Updated 11 hours ago

Nepal Unveils Sovereign Wealth Fund and Eases Foreign Investment Exit Rules

Photo · english.khabarhub.com

Nepal's Finance Minister, Dr. Swarnim Wagle, announced the creation of a Sovereign Wealth Fund, to be capitalized by a portion of the nation's foreign exchange reserves, and the elimination of prior central bank approval for foreign investors to repatriate profits or capital. These measures, presented as part of the federal budget for Fiscal Year 2026/27, aim to strengthen capital mobilization and improve the investment climate.

  • The government will channel a portion of Nepal's foreign exchange reserves, currently at a record Rs 3.494 trillion, into the new Sovereign Wealth Fund.
  • Foreign investors will no longer require prior approval from Nepal Rastra Bank to repatriate profits or capital.
  • The budget also includes significant tax reforms, reducing the income tax slab to seven levels and raising the minimum income tax threshold to over Rs 1 million.
  • Consumers will receive an immediate 10 percent VAT rebate for digital payments to promote a cashless economy.
  • A dedicated tribunal will be established to expedite the resolution of commercial disputes.

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