Arthabazar 9th Anniversary: Nepal’s Urgent Call for Economic & IT Transformation
29th May 2025, Kathmandu
Nepal stands at a critical juncture, facing economic headwinds that demand immediate and coordinated national action. Experts from diverse sectors, gathered at Arthabazar.com’s 9th-anniversary celebration, have issued a resounding call for structural reforms, private sector collaboration, and a robust digital push to revitalize the nation’s economy.
Arthabazar 9th Anniversary
This article distills their key insights, offering a roadmap for Nepal’s economic resurgence.
Economic Transformation: A National Emergency
Former Finance Minister Mahesh Acharya unequivocally declared that Nepal’s economic transformation must be treated as a “national emergency.” This urgent agenda, he stressed, must be internalized by the highest echelons of power – from the Prime Minister and ruling parties to the opposition, the entire Parliament, and even the judiciary.
Acharya challenged traditional budgeting methods, advocating for “reform-oriented budgets that respond to sluggish demand.” He believes that intense collaboration between the Prime Minister, the private sector, and domain experts – potentially 18 hours a day – could trigger a significant economic turnaround rapidly. Achieving sustainable growth of 8% to 12% necessitates a unified front between the government, private sector, and opposition on core economic goals. The immediate coordination of budget and monetary policy is also paramount.
Addressing the cooperative crisis, Acharya warned against superficial fixes, emphasizing the need for structural reforms to rebuild public trust. His proposal for government-arranged compensation mechanisms, backed by collateralized assets, offers a potential solution to reinvigorate the market and ease public unrest.
Stronger Policies and Implementation: A Prerequisite for Growth
Chintamani Shivakoti, Director at Nepal Rastra Bank, highlighted a critical impediment to progress: the poor implementation of laws and policies, particularly in anti-money laundering enforcement. The lack of comprehensive data on asset seizures, legal proceedings, and convictions underscores this deficiency.
Shivakoti urged for the decoupling of banking from politics and a more pragmatic approach to issues like demonetization. He emphasized that any such strategy should be executed “discreetly and decisively by the Prime Minister, Finance Minister, and NRB Governor.”
To revive the economy to its pre-COVID-19 state, he advocated for liberal policies in key sectors, including real estate, housing, automobiles, and energy. Recognizing the capital market’s vital role, he recommended easing restrictions to encourage investment. Furthermore, Shivakoti pressed the government to settle outstanding interest subsidies owed to banks, which currently hinder the effective disbursement of concessional loans. He concluded by emphasizing that the upcoming budget must prioritize essential projects, control unnecessary expenditures, and promote job creation through economic stimulus.
Unlocking Digital Potential: Prioritizing Domestic Software and Tech Startups
Chiranjibi Adhikari, Senior Vice President of the Computer Association of Nepal Federation (CAN Federation) and a cybersecurity entrepreneur, championed the cause of Nepal’s IT ecosystem. He called for clear and concrete policies to foster this crucial sector.
Adhikari’s central plea is for the government to prioritize domestic software development in public procurement, urging a shift away from reliance on foreign solutions. Despite spending millions to build excellent software, government bodies still rely on imported solutions. This mindset must change,” he asserted.
He identified the lack of access to bank loans as a significant hurdle for software companies, proposing that software valuation be accepted as loan collateral. Additionally, he recommended tax incentives, policy clarity, streamlined procedures, and grants to enable startups to flourish.
Looking to the future, Adhikari emphasized the need for Nepal to invest in frontier technologies such as artificial intelligence, cybersecurity, data protection, and blockchain. He envisioned data centers and cloud infrastructure as the “backbone of Nepal’s digital economy,” urging government agencies to develop and implement policies to achieve digital sovereignty.
Conclusion: A Coordinated Vision for a Prosperous Nepal
The collective wisdom shared at Arthabazar.com’s anniversary celebration paints a clear picture: Nepal’s economic future hinges on a concerted national effort.
By treating economic transformation as an emergency, implementing stronger policies, and aggressively promoting its domestic IT sector, Nepal can unlock its vast potential and secure a prosperous future. The time for decisive action is now.
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