KATHMANDU, May 29: The government has removed the minimum thresholdor foreign investment in the information technology sector.
Unveiling the budget for the Fiscal Year (FY) 2023/24 at a joint session of the Federal Parliament on Monday, Finance Minister Dr Prakash Sharan Mahat said that the minimum threshold of foreign investment will be reviewed and sectoral limits will be determined.
Minister Dr Mahat also said that the minimum threshold of foreign investment in the information technology sector will be removed. He said that the industry providing information technology services will be allowed to match up to 10 percent of the foreign exchange earnings made by the industry to open contact offices in third countries and purchase software or programs and equipment.
Minister Dr Mahat said that apart from the industries that require permission according to the existing laws, approval will be given through an automatic process to bring in investments in industries that are open to foreign investment. He said that an arrangement will be made to ensure that permission will not be required to make reinvestment in the company through the income generated from foreign investment.