Kathmandu-After the closure of USAID grant assistance projects, the United States has shifted its policy toward prioritizing private investment. American officials have clearly communicated this policy to Nepali officials during recent meetings, both inside and outside Nepal. They have also shared their concerns and expectations regarding this approach.

Even though the US policy aims to continue financial engagement through private investment, some major American companies operating in Nepal are already facing various disputes. Some are long standing issues, while others are recent. These companies have been expressing dissatisfaction over Nepal’s enforcement of domestic laws and regulations.

Bottlers Nepal, which produces Coca Cola products, is the largest American affiliated company in Nepal. The company is currently facing a capital gains tax evasion case worth more than Rs 7 billion, which is under judicial consideration. American representatives have objected to the very prosecution of the case.

They have argued that the court’s recent interpretation of the law is being applied retroactively to past transactions. They also oppose the fact that the tax dispute has been turned into a criminal case. According to them, a country like Nepal, which is seeking greater foreign investment and technology transfer, needs simpler and clearer policies on such matters.

Another American company, MetLife Insurance, has also raised concerns. After Nepal introduced a rule requiring all reinsurance to be conducted domestically, MetLife has opposed the policy. The company argues that its international and interconnected business model conflicts with a system focused entirely on the domestic market. It has been lobbying the government on this issue, and American officials have also shown interest in the matter.

Similarly, the Cotiviti case has become another issue of concern. Nepal’s Revenue Investigation Department filed a case questioning both the change in ownership of Cotiviti in the United States and the VAT refund claimed on services exported from Nepal. The US side, along with other companies, has objected to the case. Critics argue that the government ignored the fundamental nature of the services and the structure of the business while filing the case.

Likewise, Starlink, which has been trying to enter Nepal, still has not received approval. The American side claims that although Nepal’s domestic laws do not prohibit the company’s entry, certain government officials have delayed approval due to vested interests.

They complain that Nepal continues to block Starlink even after countries like India and Bhutan have already granted approval. According to them, Chinese influence is also playing a role. They believe Chinese stakeholders do not want an American company to establish itself in Nepal before Chinese competitors, and that this is one reason Starlink’s approval has been delayed.

Officials say Nepali representatives hear similar complaints not only from American officials, but also during informal discussions at multilateral financial forums such as the World Bank and the Asian Development Bank meetings.