Former Finance Minister Khanal Calls for Major Policy Reforms to Revive Nepal's MSMEs
Summary
Former Finance Minister Rameshore Khanal has called for sweeping reforms in insurance, lending and policy frameworks to revive Nepal’s MSMEs. A policy discussion in Kathmandu highlighted weak risk management, low insurance coverage and the need for more inclusive support measures.
Key Points
- Rameshore Khanal urged major reforms to insurance, lending and policy systems to help Nepal’s MSMEs recover from pandemic-era stress.
- He said only about 10% of Nepal’s nearly 900,000 MSMEs are insured, leaving most businesses exposed to risk.
- Khanal proposed that the government initially cover 100% of insurance premiums for low-income farmers and recover the contribution after compensation is paid.
- Officials from UNDP, the Nepal Insurance Authority and the Ministry of Industry, Commerce and Supplies also backed broader insurance coverage and risk-finance support.
