Nepal’s economic challenges are too deep to be solved within a single year. Facing a massive fiscal deficit, rising unemployment, weak foreign investment, and persistent inflation, the new government’s most urgent task is not delivering quick wins but restoring private-sector confidence. The paper’s most compelling argument is that policy instability—not a lack of opportunities—is Nepal’s biggest economic obstacle. Businesses and investors struggle to plan when rules change unpredictably, discouraging investment and job creation. To unlock growth, Nepal must simplify business regulations, expand access to finance for young entrepreneurs, manage LDC graduation carefully, and capitalize on high-potential sectors such as ICT, energy, tourism, and sports. The message is clear: Nepal’s future depends less on resilience and more on creating a stable, predictable environment where entrepreneurship and investment can thrive.
The text is an abridged and translated version of the March 2026 edition of Sambaad @ Samriddhi. Sambaad @ Samriddhi is a monthly discussion on contemporary issues. In this edition, Gokarna Raj Awasthi, Director General of Federation of Nepal Chamber of Commerce and Industries, shares his insights on the reform priorities for the new government. This discussion was moderated by Dilip Gurung.
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