Opinion | The case for Nepal’s sovereign wealth funds to attract FDI
Summary
Nepal aims to attract strategic foreign direct investment through the establishment of a sovereign wealth fund and tax reforms modeled after the US to accelerate its journey to a $100 billion economy.
Key Points
- Nepal targets a $100 billion economy in five years and sees foreign direct investment as vital to this goal.
- Establishing a sovereign wealth fund (SWF) using excess foreign reserve funds is proposed to drive domestic investment.
- Nepal can benefit from tax reforms inspired by US Internal Revenue Code Section 892 to attract GCC sovereign wealth funds.
- Governance and legal frameworks including bilateral investment protection and tax treaties are essential for the SWF's success.
