Mr. Shrestha situates Nepal’s current economic strain within a longer history of promises made and paths partially taken. He recalls the reform era of the 1990s, when opening up the economy lifted restrictions and briefly created confidence in private enterprise. But that momentum, he argues, was not sustained. Political instability, conflict, and rising state intervention gradually weakened productive sectors, while credit increasingly flowed into land and real estate rather than industry. Protectionist tendencies and policy uncertainty further distorted incentives. He also highlights the expanding informal economy as both a symptom and cushion. His core warning is clear: Nepal’s reform window is narrowing and decisive correction is now urgent.
The text is an abridged and translated version of the February 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, Niranjan Shrestha shares his insights on Nepal’s Economic Reality. The discussion was moderated by Robin Sitoula.
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