19th September 2025, Kathmandu
Nepal Rastra Bank Governor, Dr. Biswo Nath Poudel, has emphasized that political stability, an investment-friendly environment, and private-sector confidence are crucial for Nepal’s economic growth.
Key to Nepal’s Economic Growth
Nepal Rastra Bank Governor, Dr. Biswo Nath Poudel, has emphasized that political stability, an investment-friendly environment, and private-sector confidence are crucial for Nepal’s economic growth. During a recent program in Kathmandu, he stressed the need for systemic economic reforms, especially after the damage caused during the “Gen Z” movement.
Rebuilding Private Sector Confidence
Governor Poudel highlighted the urgent need to restore the confidence of entrepreneurs, which was severely shaken by the widespread damage to private commercial properties during the recent protests. He acknowledged that while reconstruction will require significant resources, the more pressing issues are improving governance and administrative efficiency. Poudel believes that a secure environment for domestic investment is the first step toward attracting foreign direct investment (FDI). If domestic capital is encouraged to remain within the country, it will create a positive ripple effect that will attract international investors as well.
Legal Clarity: A core tenet of Poudel’s message was the importance of legal clarity. He pointed out that ambiguous laws and their misinterpretation can create hurdles for businesses and send incorrect signals to investors. Clear, precise legal provisions are necessary for every sector to ensure a smooth and predictable business environment.
Funding for Reconstruction: Poudel assured that funding for the reconstruction of damaged infrastructure will not be a problem. However, he stressed that resources alone are not enough; they must be accompanied by stronger governance and administrative reforms to be effective.
The Road Ahead for Nepal’s Economy
The Governor’s statements reflect a broader understanding of the challenges facing Nepal’s economy. The country has long struggled to attract foreign investment, with a 2025 World Bank report highlighting that while growth is rebounding, private investment remains low. The report points to the need for reforms that can boost business confidence and improve Nepal’s international competitiveness. Poudel’s focus on legal clarity and political stability is a direct acknowledgment of these long-standing issues. He emphasized that good governance, efficient administration, and legal certainty are the fundamental pillars for achieving sustainable growth and economic resilience in the face of future challenges. The “Gen Z” movement, while destructive in the short term, has brought these systemic issues to the forefront, forcing policymakers to address them with greater urgency.
For More: Key to Nepal’s Economic Growth