Strengthening the 200-Year Bond Through Investment and Education Strengthening the 200-Year Bond Through Investment and Education

Dr. Roshan Rathi, a young entrepreneur and CEO of AITM College, currently leads the Nepal-Britain Chamber of Commerce (NBCC). Established in 1995, the NBCC serves as a vital bridge for trade and economic partnership between Nepal and its oldest diplomatic ally, the United Kingdom.

Shifting from Aid to Investment

While the UK has historically supported Nepal through developmental aid (formerly via DFID), Dr. Rathi emphasizes a strategic shift toward Foreign Direct Investment (FDI). The Chamber is currently prioritizing sectors such as Information Technology, Hydropower, Clean Energy, and Education. The goal is to connect British investors with local opportunities, moving beyond simple trade to long-term industrial partnerships.

The Digital and Service Frontier

Trade is no longer limited to physical goods like carpets, handicrafts, tea, and coffee. Dr. Rathi highlights the massive potential in IT outsourcing. By positioning Nepal as a hub for service-based exports, the Chamber seeks to leverage the UK’s status as a major global IT market.

Policy Hurdles: The Need for a Double Tax Avoidance Agreement

One significant barrier to growth is the absence of a Double Taxation Avoidance Agreement (DTAA) between the two nations. Dr. Rathi notes that investors are often deterred by the prospect of being taxed in both jurisdictions. The NBCC is actively lobbying the Ministry of Finance to finalize this agreement to streamline the flow of capital and profits.

Education as a Bridge

As the CEO of an educational institution, Dr. Rathi points out that nearly 50% of Nepali students enrolled in foreign-affiliated colleges in Nepal are studying under British curricula. He argues that providing high-quality British degrees locally is an economic necessity. For instance, a course costing £50,000 in the UK can be completed for roughly £7,000 in Nepal, preventing capital flight while elevating the local academic ecosystem.

Current Business Sentiment

Despite the potential, Dr. Rathi acknowledges a “wait and watch” atmosphere among entrepreneurs. High bank liquidity paired with low loan demand and a sense of insecurity among the private sector has slowed domestic and foreign investment. However, he remains optimistic that by addressing policy barriers and fostering networking between the two nations’ chambers, the 208-year-old relationship can enter a new era of prosperity.