1.

Recommend a commercial policy for the Nepalese government to diversify trade to

countries other than India in terms of product & service variety.

Eliminated quantitative restrictions on imports and import licensing.

Reduced import tariff rates.
Zero tariffs for information technology products.
Made fully convertible current account of balance of payments.
Limited export duties only to selected natural resource products.
Simplified export and import procedures.
Took steps to attract FDI, permitting 100 percent foreign ownership in most sectors, with
the exception of sectors with strategic importance.
Public sector works as a catalyst and facilitator to expand the role of private sector.
No Licenses required for exports and import of any products other than banned or
quantitatively restricted items.
Foreign currency required for import will be made available by the commercial banks at
the market rate.
Exporters allowed retaining their export earnings in their own foreign currency account.
No quantitative restrictions on the exportable products carried by tourists while returning
from Nepal.

2. Recommend a commercial policy to government to make a Nepal a FDI destination.

Foreign direct investment (FDI) is a direct investment into production or business in a country by
an individual or company of another country, either by buying a company in the target country or
by expanding operations of an existing business in that country. FDI is considered as an
instrument in promoting industrial growth and foreign trade.
Multinational corporations looking to invest not only take for granted the existence of state-ofthe art FDI policy groundwork and a scope of business facilitation schemes but also follow a
composite of cost truncation, larger markets, and created assets that can assist them keep a
competitive edge. Created assets encompass communications infrastructure, marketing channels,
technology and innovative scope and so on. These facilities are unavailable in Nepal. Thus,
Nepal does not possess much encouragement for foreign investors.
In order to make Nepal a FDI destination, government should make some effective commercial
policies. Some of the policies that the government needs to consider are as follows:
There should be technology transfer agreement between a local industry and a foreign
investor.
While determining the price of the products, there should be no intervention by the
government.
Establishment and development of infrastructure.
Restructuring of institutional and legal frameworks.
Immediate and high-level start on improvement of the investment framework.
Creation of Industry Promotion Packages to gain early winners.
Formation of typical investment agency within the Government.