Opinion | Why Nepal’s economy will need more than a two-thirds majority
Summary
Nepal’s economy is constrained less by parliamentary arithmetic than by weak state capacity, low private-sector trust, and persistent barriers to jobs and investment. Despite a rare two-thirds majority, the new government faces structural problems in credit, business registration, and public services that have slowed growth for decades.
Key Points
- Nepal has the resources, demographic advantage and market access to grow, but chronic political instability and weak execution have repeatedly held the economy back.
- The article argues that the central bank’s credit clampdown, poor access to collateral-free finance, and problems in cooperatives and microfinance have worsened the slowdown.
- Private-sector leaders say growth depends on trust and better engagement, with business still carrying most of output and employment.
- The government’s two-thirds majority is not enough by itself; reforms in education, healthcare, infrastructure and jobs will determine whether confidence returns.
