Spread the love

Kathmandu, 2 Dec: Concern is rising in Nepal’s private sector over a deteriorating investment environment. Speaking at the 29th anniversary and awards program of the Nepal Economic Journalists Society, industry leaders highlighted how misinformation on social media and media outlets has hurt investor confidence.

Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry, recalled the losses during the recent Gen Z movement caused by false information, stressing the need for good governance, anti-corruption measures, and smooth service delivery to boost investment. “Private sector drives the economy, yet every political unrest diminishes investor enthusiasm,” he said, urging strict enforcement of policies and legal certainty to counter negative perceptions.

Virendra Raj Pandey, president of the Nepal Industrial Association, called for immediate government action to revive investor morale. He noted that liquidity in banks and financial institutions is ample, and interest rates have improved, yet investment remains stagnant. Kamlesh Kumar Agrawal of the Nepal Chamber of Commerce added that the economy has not fully recovered post-COVID-19, with industrial establishments increasingly vulnerable, pressing for guaranteed investment security to lift private sector confidence.

Responding to these concerns, Finance Minister Rameshwar Prasad Khanal emphasized the need for honest reflection on why expected economic growth has lagged, citing political instability and unrest as major factors. He urged recognition that all property created in Nepal belongs to the nation, regardless of its creator, and warned that misinformation can harm both international relations and investment. He assured that large infrastructure projects are progressing with increased budgets and measures are underway to regulate capital markets and official services.

Industry, Commerce and Supplies Minister Anil Kumar Sinha said future government focus will be on economic strengthening, domestic production, productivity growth, and employment creation, while maintaining governance and efficient service delivery.

Nepal Rastra Bank Governor Prof. Dr. Bishwanath Paudel highlighted liquidity management as the main challenge. Despite low interest rates, infrastructure investment remains limited. He urged banks to expand loans in agriculture, tourism, energy, and productive sectors, and to focus on service efficiency and technology adoption rather than relying solely on interest for profits. “Banks must actively support monetary policy objectives, and financial institutions should be ready to leverage increasingly flexible policies,” he said.