IT’s time to go global
Summary
Nepal is easing restrictions on foreign investment for IT companies, allowing them to expand internationally, supported by historic foreign exchange reserves and ongoing legal reforms. However, challenges remain in digital infrastructure that are crucial for scaling.
Key Points
- In December 2025, iDream Technologies Pvt. Ltd. became the first Nepali company allowed to invest abroad in the US.
- The Act Restricting Investment Abroad, 1964 limited Nepali outward investments for over six decades to protect foreign exchange reserves.
- Recent legal changes in 2023 and 2024 have liberalized capital flow for IT companies, including easing investment limits and approval procedures.
- Nepal's digital economy growth requires not only capital liberalization but improved digital public infrastructure, especially in digital data exchange systems.
