Kathmandu, May 29 -- The government has announced to allow Nepali companies to invest abroad, marking a significant policy shift aimed at globalising domestic enterprises. Presenting the budget for fiscal year 2025-26 to a joint session of Parliament on Wednesday, Finance Minister Bishnu Paudel announced the change, which will be subject to approval from the Investment Board Nepal.

Under the new arrangement, Nepali companies will be permitted to set up overseas sales branches and processing units for semi-processed goods. However, up to only 25 percent of the annual income generated from exports will be allowed for reinvestment abroad, and 50 percent of the profits earned from such ventures must be repatriated to Nepal.

In a parallel mo...