Ambassador Paudyal urges Canadian investors to invest in Nepal

OTTAWA:  Ambassador of Nepal to Canada, Bharat Raj Paudyal, has urged Canadian investors to invest in Nepal.

Addressing the launch of Eastern Ontario/Quebec Chapter of Canadian Hindu Chamber of Commerce and Eastern Canada Investment Summit in Ottawa on Saturday, Ambassador Paudyal said that Nepal offers a wide array of investment opportunities in profitable sectors, such as energy, transportation, agriculture, manufacturing, education, banking and finance, mines and minerals, tourism, health, ICT to name a few.

In hydropower alone, foreign investment projects with capacity of over 5000 megawatts of power are currently at different stages of development, he said.

Over the years, Nepal has made significant strides in creating an environment that is conducive to investment and business.

Ambassador Paudyal said that Nepal’s strategic location between two major economies, India and China, positions it as a vital gateway for trade and investment in the South Asian region. Our geographic advantage offers businesses access to a large and dynamic markets in Asia, he added.

Nepal enjoys duty- and tax-free arrangements under SAFTA and BIMSTEC free trade agreement. Nepal also enjoys duty free and open border bilateral market access to India and zero tariff access for 8000-plus products to Chinese market.

As a member of the WTO, Nepal enjoys duty free and quota free market access to the European Union. Nepal also enjoys duty-free market access to USA for 77 items that are commonly produced in Nepal, including garments.

“Nepal allows up to 100% foreign ownership of the investment. The process for entry, operation, repatriation and exit of foreign investment has been made smooth and hassle free.,” said Ambassador Paudyal adding, “We have a generous policy of tax waiver and exemption on foreign investments.”

Nepal grants 100% income tax exemption for an extended period to the industries established in special economic zones. A similar exemption is also available for investment of 10 million dollars or that employs more than 500 people. National treatment and non-nationalization of foreign investment companies has been guaranteed by law. Process for land acquisition and landownership by foreign investment company have been simplified, and land ceiling is waived for infrastructure projects.

‘Most liberal visa policy and growing talent pool’

Ambassador Paudyal said that Nepal’s visa policy is the most liberal and simplified in the region and investors are granted residential visas. ‘Repatriation of the profits is easy and smooth. We are one of the strongest countries in the region in terms of foreign currency reserve,’ he added.

“We have abundance of English-speaking young labour force with competitive labour cost, and high participation of women in workforce. With growing emphasis on education and vocational training, our talent pool is becoming better equipped to meet the needs of modern industries,” said Ambassador Paudyal.

Nepal is continuously improving its infrastructure, streamlining regulatory processes, and focusing on sectors that align with global trends, such as green energy, sustainable tourism, and technology. Projects like the expansion of Kathmandu’s international airport and the development of new highways are transforming Nepal into a regional hub for commerce and industry, Ambassador Paudyal said.

Nepal’s economy is on a robust growth trajectory. The economic reforms over the years have significantly improved the business climate and supported innovation and investment.

The Government of Nepal is committed to further simplifying regulatory processes, enhancing transparency, and offering incentives to foreign investors. Nepal is not just a destination; it is a promising partner in your journey towards growth of business and innovation, he said.

Ambassador Paudyal recalled that a delegation of Canadian Hindu Chamber of Commerce had visited Nepal last year and had a useful meeting with the Federation of Nepalese Chamber of Commerce and Industries (FNCCI) in Kathmandu. “We are eager to welcome Canadian businesses and investors to explore the opportunities that await in Nepal. Together, we can forge new pathways for development and create lasting value for our people and economies,” he added.

President of Canadian Hindu Chamber of Commerce, Kushagra Sharma, said that investing in the green technology as well as in IT/AI sector has become highly promising for futuristic investment in Canada and in the world. He encouraged the entrepreneurs to take advantage of tech sector for the renewal and revival of their businesses. He also urged his members to explore investment opportunities in Nepal.