Kathmandu, June 24 – In a major boost to Nepal’s burgeoning tech industry, the Nepal Rastra Bank (NRB) has amended its Foreign Investment and Foreign Loan Management Bylaw, enabling IT companies to invest abroad for the first time. The move has been lauded by the Nepal Association for Software and IT Services Companies (NAS-IT) as a transformative step that will accelerate Nepal’s emergence as a global IT hub.

Announced through the 4th Amendment to the Bylaw published on June 18, 2025, the new provision—Section 5(Ka)—allows eligible IT companies to access foreign exchange for overseas investment. To qualify, firms must have consistently earned foreign income from IT-related service exports over the past three fiscal years. The investment ceiling is set at either 50% of the average foreign currency earnings during that period or USD 1 million (or its equivalent), whichever is lower.

“This marks a historic moment for Nepal’s tech sector,” said NAS-IT in an official statement. “We commend the Government of Nepal and NRB for recognizing the needs of the industry and making this bold, forward-looking decision.”

The change builds on momentum generated by the Ordinance on Improvement of Economic and Business Environment and Investment Enhancement, issued on January 13, 2025. That ordinance revised several key laws—including the Foreign Exchange Regulation Act 1962, Company Act 2006, and Foreign Investment and Technology Transfer Act 2019—to lay the groundwork for outward investment by Nepali tech firms.

For years, NAS-IT and Nepal’s broader tech community have advocated for such policy reforms to help local companies expand internationally, attract global partners, and scale their services. With this new provision, industry leaders believe Nepalese IT firms can now compete more effectively in the global marketplace.

About NAS-IT

The Nepal Association for Software and IT Services Companies (NAS-IT) is the country’s leading non-profit body representing the IT sector. NAS-IT champions innovation, entrepreneurship, and global collaboration to drive sustainable growth in Nepal’s digital economy.