Nepal’s economic performance is shaped not only by domestic policies but also by its integration into global trade, financial markets, and migration networks. Yet conventional policy assumptions often fail to account for the structural realities of a small, open economy. Persistent challenges—including weak export competitiveness, high costs of doing business, limited institutional capacity, and heavy reliance on remittance-driven consumption—continue to constrain long-term economic transformation and productive growth.
Mr. Abyaya Neopane examines the factors that influence Nepal’s trade and development outcomes, emphasizing the importance of firm dynamics, institutional quality, and evidence-based policymaking. He argues that sustainable competitiveness depends less on exchange rate adjustments or broad subsidies and more on targeted support for high-potential firms, stronger enforcement mechanisms, and an economic environment that encourages innovation, investment, and productive enterprise.
The text is an abridged and translated version of the October 2025 edition of Sambaad @ Samriddhi. Sambaad @ Samriddhi is a monthly discussion on contemporary issues held on the Last Friday of each month. In this edition, Abyaya Neopane, PhD Candidate in Economics at The Australian National University, shares his insights on the key factors that shape Nepal’s trade competitiveness, highlighting domestic and external factors, firm dynamics, and institutional capacity that influence export performance. The discussion was moderated by Ashesh Shrestha.
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