Why policy stability and legal clarity are vital for Nepal’s private sector

Nepal cannot revive investment while businesses remain wary of policy shifts, regulatory action and administrative delays.

These days, when I speak to fellow businesspeople, I hear the same question repeatedly: When will the investment climate improve? This routine complaint reflects the crisis Nepal’s private sector has faced for several years. Banks have ample liquidity, yet investors remain reluctant to invest. There were hopes that the new government would improve the climate. Yet even six months after it took office, business confidence has not recovered.