Nepal is heavily dependent on the import of commodities, including refined petroleum, semi-finished iron, clothing, pharmaceuticals, foodstuffs, electronic goods and equipment and vehicles. Imports, however, boost federal revenues, as around half of taxes come from applying sales tax and customs and excise duties.
The Ministry of Foreign Affairs emphasises Nepal’s welcoming outlook for foreign investment. It has identified sectors such as organic agriculture, improving tourism links with neighbouring China and India, hydropower and medical tourism as investment opportunities. Establishing Nepal as an outsourcing hub for companies from Europe, the US and Australia is another priority.