Weak private investment deepens pressure on Nepal’s revenue and public debt
Summary
Nepal's private sector investment has declined, reducing revenue collection and increasing reliance on public debt. The government aims to restore investor confidence through upcoming policy measures to achieve economic growth ambitions.
Key Points
- Private sector investment in Nepal fell to 19% last year, down from the usual 25%.
- Weak private investment has caused revenue collection shortfalls, increasing dependency on public borrowing.
- Government investment declined by 33% in fiscal year 2025-26, creating a statistical anomaly in private investment figures.
- The upcoming policy and budget need to rebuild investor confidence and improve the investment climate for economic growth.
