KATHMANDU, Oct 17: In a bid to promote entrepreneurship and support emerging businesses, the government has approved a comprehensive plan to fast-track concessional loans for startup ventures.
The Ministry of Industry, Commerce and Supply (MoICS) on Tuesday endorsed a 39-point “Immediate Reform Work Plan for Promotion of Effective Public Service 2025,” which includes several measures to accelerate startup financing and streamline related processes.
According to the plan, proposals under the Startup Loan Facilitation Scheme—which offers collateral-free loans at a concessional 3 percent interest rate—will be invited from aspiring entrepreneurs by mid-January 2026. The ministry will then shortlist eligible applicants.
Youths increasingly attracted to startup ventures
To further promote the startup ecosystem, the government also plans to establish a Center for Entrepreneurship Development and Startup Promotion and Facilitation. The MoICS said a separate action plan will be formulated and implemented promptly to operationalize the center.
The previous government had allocated Rs 730 million in the annual budget to provide concessional loans for startup entrepreneurs, aimed at supporting skill development, business expansion, marketing, and value-chain enhancement.
As part of its broader reform agenda, the ministry will also draft the Company Bill 2025 to improve Nepal’s industrial and business climate. Similarly, the Micro Enterprise Development Program Operation Directive 2020 will be amended to better target programs for the poor.
The work plan also includes provisions to simplify company registration and closure procedures, digitize old records of registered firms, and integrate bank account and approval systems for foreign direct investment (FDI). The government will facilitate the use of an “automated route” for FDI approvals to attract more investment.
In the trade sector, the MoICS aims to develop an integrated strategy for service trade, review the national trade policy, and prepare a strategic plan for the commerce sector to align with Nepal’s goal of attaining middle-income status. The government will also hold meetings of the Nepal-China Trade Mechanism and advance commerce and investment cooperation with Australia.
On the supply side, the government has proposed 11 reform measures, including price standardization of essential goods, launching a web portal for domestic products, and tightening surveillance of blacklisted importers and exporters.
