The Government of Nepal has proposed issuing an annual “Diaspora Bond” worth NPR 100 billion, specifically targeting Non-Resident Nepalis (NRNs) and people of Nepali origin living abroad. This initiative, included in the draft of the National Commitment Document, reflects a strategic vision to deepen economic cooperation and rebuild stronger emotional and financial ties with the global Nepali community.
A Diaspora Bond is a sovereign financial instrument that allows Nepalis living abroad to directly invest in their home country. The funds mobilized through this bond are expected to be channeled into critical sectors such as infrastructure development (roads, energy, healthcare) and export-oriented industries. This not only supports Nepal’s development priorities but also creates a meaningful pathway for NRNs to contribute to nation-building beyond remittances.
The target investors include NRNs, migrant workers, and second-generation Nepalis abroad—especially those who consistently send remittances but have limited structured opportunities for long-term and secure investment in Nepal. By offering this bond, the government is attempting to convert remittance flows into productive capital investment.
One of the most attractive aspects of this proposal is the security and incentives attached to it. The bond is expected to carry full government guarantee, making it a relatively low-risk investment option. In addition, investors may benefit from higher interest rates compared to traditional bank deposits, tax exemptions, and relief from double taxation. The proposal also introduces the concept of “Supreme Organic Investor” status, along with long-term privileges such as continuity of citizenship, property ownership rights, and even voting rights—measures that could significantly reshape diaspora engagement policies.
It is important to note that Nepal has previously introduced instruments like the Foreign Employment Savings Bond, which did not achieve the desired level of success. Learning from past experiences, this new initiative emphasizes policy reform, transparency, trust-building, and more attractive incentives to ensure better participation and results.
If implemented effectively, the Diaspora Bond could be a game changer for Nepal’s economy. It has the potential to bring in large-scale foreign capital, reduce dependency on traditional aid, and promote sustainable development. More importantly, it could drive a “brain gain” movement—encouraging skilled, experienced, and financially capable Nepalis abroad to reconnect with and invest in their homeland.
As a Non-Resident Nepali (NRN), I warmly welcome the Government of Nepal’s initiative to introduce the Diaspora Bond. This is a visionary and forward-looking step that not only opens new avenues for investment but also strengthens our identity, connection, and contribution to Nepal’s future.
Proud to see such meaningful discussions taking shape
Som Nath Sapkota
Spokesperson
NRNA ICC
Source :- scotnepal
