Bridging the development gap

The disparity in Nepal’s investment needs and its achievements necessitates mobilising private investment.

Governments worldwide struggle to provide essential public goods like urban infrastructure and quality services amid growing populations. In least-developed and geologically fragile countries like Nepal, these challenges are intensified by financial constraints, climate-induced disasters and political and regulatory uncertainty. To achieve middle-income status and meet the Sustainable Development Goals (SDGs) by 2030, Nepal requires annual investments of around $17 billion, with more than half allocated to infrastructure. The government’s 16th Periodic Plan estimates a total investment need of $81.71 billion, with over 65 percent expected from the private sector. The disparity between Nepal’s investment needs and its actual achievements necessitates mobilising private-sector investment and expertise.