Kathmandu-Amid longstanding complaints that difficulties in repatriating investments have been a major obstacle to attracting foreign investment in Nepal, the government has announced measures to simplify the process.

Through the budget for the upcoming fiscal year 2026-27, the government has proposed amendments to the Foreign Investment and Technology Transfer Act, 2019 (2075 BS), aimed at streamlining the repatriation of foreign investments.

Presenting the budget, Finance Minister Dr. Swarnim Waglé announced that foreign investors will no longer be required to obtain prior approval from the Nepal Rastra Bank before repatriating their investments. However, investors will still be required to notify the central bank about such transactions.

Under the current legal framework, foreign investors are allowed to repatriate funds obtained from the sale of shares, full or partial liquidation of companies or industries, profits and dividends, royalties from technology transfer agreements, lease payments, and compensation awarded through legal processes.

Section 20 of the Act currently allows investors to repatriate their investments in the same foreign currency in which the investment was made, or in another convertible foreign currency with approval from Nepal Rastra Bank, provided all tax liabilities have been fulfilled.

With the proposed budget reforms removing the pre-approval requirement, the government expects the repatriation process to become faster and more convenient for investors. Officials believe the change will facilitate smoother capital outflows and improve Nepal’s attractiveness as an investment destination.

The government has also announced plans to make it easier for Nepali citizens to invest abroad. Amendments to the Industrial Enterprises Act will allow businesses to increase production capacity, change ownership structures, and raise capital by simply notifying the Department of Industry rather than seeking prior approval.

In addition, Finance Minister Waglé stated that the scope of foreign investment will be expanded to include convertible instruments, project-based funding, and other hybrid financial instruments.

The budget further proposes promoting automatic approval mechanisms for foreign investment by eliminating certain pre-approval requirements and simplifying procedures for payments related to service fees, royalties, and technology transfer agreements abroad.