Unimpressive economy

Nepal’s economic policy reform is unsustainable and unsuitable for private investment.

Nepal initiated a liberalisation policy in the middle of the 1980s, although it gained momentum only in the 1990s. This policy can help promote and stimulate private sector investment and, in turn, create a competitive environment in the economy. It can bring a positive attitude to private sector investment, which heralds economic prosperity. For effective implementation of this policy, a number of public enterprises involved in producing basic goods like shoes, sugar, agricultural tools, clothes and paper were dismantled and transferred to the private sector during the 1990s. In the past, these industries made significant contributions to all economic activities such as production, distribution, consumption, income and employment. However, several among those industries have been closed since, creating a shortage of goods produced by such industries.