Its about time Nepal revises this ages old law and allow Nepalese to invest abroad, which in-turn shall remit profits and dividends back to Nepal.
Act Restricting Investment Abroad, 2021BS (1964)
Article 3 Restriction on making investment abroad:
(1) No one shall make any kind of investment abroad after the commencement of this Act.
(2) Notwithstanding anything contained in sub-section (1), in relation to any specific kind of investment, the Government of Nepal may, by a notification in the Nepal Gazette, grant exemption from the restriction set forth in that sub-section, and specify the kind, extent, period of the investment so exempted and other necessary terms pertaining thereto.
Here’s some useful discussions on the same:
A 50-year old law entitled ‘Act Restricting Investment Abroad, 1964’ is still in force in Nepal which stops Nepali citizens from investing in a foreign country. The existing fear is that the country’s economy will suffer if Nepal allows outbound FDI. But many evidences suggest that despite this law, Nepali people are investing in different other countries through one channel or other. And such evidences are becoming more visible. Policymakers are in dilemma while the business community is also largely divided on the issue. However, the debate on legitimatizing outbound FDI is heating up in recent times. What impact will it have on a country like Nepal where the national economy is not strong? Will it create BoP deficit as many fear? What happens if all businessmen start to set up industries in foreign countries which have better policy stability and lesser labour problem? New Business Age tries to analyse some of these major concerns: http://www.newbusinessage.com/MagazineArticles/view/831