Private Sector Optimistic About Increased Investment Following Formation of Stable Government
Following the establishment of a stable political environment under newly appointed Prime Minister Balen Shah, the private sector expects increased investment. Finance Minister Dr. Swarnim Wagle has expressed commitment to collaborating with the private sector to repeal outdated laws and create an investment-friendly environment. Chandram Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, conveyed confidence in the new government, anticipating accelerated economic recovery and sustainable development. Kathmandu, 27 March – The private sector, affected by the Gen Z movement, has shown enthusiasm after the formation of the new government.
Having endured a lack of an investment-friendly environment due to political instability, the private sector is responding positively to signs of political stability. Entrepreneurs have expressed confidence that investments will increase with the new government, and they expect appropriate coordination from the government moving forward.
Newly appointed Finance Minister Dr. Swarnim Wagle stated his intention to move forward in partnership with the private sector. He has taken responsibility for boosting the morale of private enterprises, a commitment that has generated a positive response among entrepreneurs and businesspeople. Dr. Wagle emphasized the government’s dedication to repealing outdated laws, stating, “The government will create a conducive environment by involving the private sector in decision-making.” He also mentioned the elimination of certain state structures that previously discouraged industrialists and entrepreneurs.
Prime Minister Balen Shah, who is under 40 years old, has inspired excitement among young people, according to Sudip Ghimire, President of the Nepalese Young Entrepreneurs Forum. Ghimire expressed hope that the youth-led government will actively seek suggestions and counsel from youth-focused business organizations. He remarked, “Youth entrepreneur associations must be promoted, and youth should be involved in policy-making—this is our greatest hope and expectation.” He welcomed the government’s intention to repeal laws that hinder industry and commerce.
“A stable government has created an environment of trust, confidence, and hope for young entrepreneurs,” Ghimire said. “This will contribute to strengthening the country economically.” He believes the government must address sector-specific business challenges and implement digital governance accordingly. It is anticipated that this government will foster an environment conducive to service exports, including in digital sectors, hospitality, tourism, and education.
The youth-led new government is expected to create opportunities for entrepreneurs, said Manish Shrestha, President of the Industry Federation Youth Entrepreneur Forum. Shrestha emphasized the need to ease business operations by removing minor obstacles. According to him, reducing bureaucratic hurdles in company registration and permit procedures will boost direct foreign investment. If the government implements its plans, increased public spending will positively impact industry and commerce, he added.
“Previously, political instability and a lack of an investment-friendly environment were challenges. Even though essential raw materials could be easily sourced from nearby borders, unnecessary complications increased production costs,” Shrestha explained. “Further challenges arise in producing and delivering goods and services to markets, which must be eliminated.” He stressed the need to regulate border areas effectively to protect domestic enterprises. He is confident that a government serving a full five-year term will lead to investment growth. He remains optimistic that the current government can create an environment where every young entrepreneur can expand investments.
Confident that Finance Minister Dr. Wagle understands entrepreneurial spirit, Shrestha believes the private sector will be encouraged. Rahul Chaudhary, Managing Director and CEO of CG Hospitality Global, expressed support and trust in the government led by Nepal’s new Prime Minister Balen Shah, predicting increased investment amid a stable political environment. Chandram Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, congratulated Prime Minister Shah and wished him success, emphasizing the anticipation of political and policy stability. Dhakal stated, “Promotion of investment-friendly policies will accelerate economic recovery and sustainable development. In partnership with the private sector—the backbone of the overall economy—we will advance the journey toward prosperity.”
