Nepal Economic Outlook 2025: NCC & IMF Discuss Budget, Monetary Policy, Private Sector Challenges
5th May 2025, Kathmandu
The Nepal Chamber of Commerce (NCC) recently hosted a high-level meeting with representatives from the International Monetary Fund (IMF). The discussion focused on Nepal’s current economic conditions, the struggles faced by the private sector, and the national budget and monetary policy for the upcoming fiscal year.
Nepal Economic Outlook 2025
The event was held at the Chamber’s office in Jamal, Kathmandu.
Focus On Post-COVID Economy And Business Climate
Chamber officials and IMF delegates explored key topics such as post-COVID economic recovery, business challenges, and the future direction of Nepal’s economy.
The Chamber raised concerns about Nepal’s industrial environment. They also highlighted the tight financial situation caused by past policies. The discussion revolved around how the private sector is coping with these challenges.
Budget Brings Hope To Private Sector
During the meeting, Chamber President Kamalesh Kumar Agrawal shared his views on the government’s newly announced budget. He welcomed the budget, saying it addressed several key issues.
According to Agrawal, the budget was shaped using suggestions from both the High-Level Economic Reform Commission and the private sector.
“This budget brings hope,” he said. “It is well-balanced, and we have advised the government to focus on effective implementation.”
Agrawal praised the government’s attempt to respond to economic problems. However, he stressed that only proper execution would bring the results the private sector expects.
Growth Target Needs Monetary Support
The government aims for 6% economic growth this fiscal year. But Agrawal pointed out that this target is only possible with the right monetary policy.
He said the Chamber expects a supportive, growth-oriented monetary policy to follow the budget. Without that, the goals in the budget may not be achievable.
He added that private businesses are still struggling due to earlier strict financial policies. These were introduced after the COVID-19 crisis to stabilize the economy. But now, those same policies are creating roadblocks for investment and expansion.
Policy Shift Is Urgently Needed
Agrawal called for a change in policy direction. He said the private sector has taken heavy losses because of tight credit, falling demand, and limited liquidity. These issues started during the pandemic and have continued.
“The economic slowdown is real,” he explained. “Those past policies may have helped in a crisis, but now they’re holding us back.”
Agrawal believes the upcoming monetary policy should ease these pressures. He said it must create space for investment, especially in productive sectors like manufacturing and agriculture.
Effective Budget Execution Is Crucial
Despite the challenges, Agrawal remains optimistic. He believes that if the budget is carried out effectively, Nepal can solve many of its pressing economic problems.
He said the private sector is ready to support the government in this effort. But for that to happen, the policy environment must improve. Businesses need clarity, consistency, and confidence to invest.
Nepal’s Potential Still Strong
Agrawal emphasized that Nepal has strong economic potential. He mentioned key sectors such as hydropower, tourism, agriculture, and technology. These could drive high growth if supported properly.
“Nepal is rich in opportunity,” he said. “We just need the right policies to unlock growth.”
He said the Chamber is committed to promoting these sectors and helping to shape policies that support investment and job creation.
IMF Delegation Engages In Dialogue
The IMF delegation was led by Dr. Sarwat Jahan, the IMF Mission Chief for Nepal. The team showed deep interest in understanding the ground realities of Nepal’s economy.
They asked about the private sector’s struggles, the impacts of recent economic policies, and expectations from the government’s budget and monetary measures.
The delegation’s visit was part of its regular engagement with Nepal’s financial institutions and policy stakeholders.
Constructive Engagement For Policy Reform
The meeting between NCC and the IMF marked a step toward better coordination between international institutions and the Nepali business community.
The Chamber emphasized that such discussions help ensure that government policies reflect real business needs.
Agrawal said the Chamber would continue to push for policies that ease doing business, improve access to finance, and attract investment. He noted that Nepal needs a business-friendly ecosystem to revive growth.
Path Forward: Private Sector Ready To Contribute
As Nepal prepares to implement the new budget, the private sector is looking for policy stability and support.
Chamber officials believe that a practical and inclusive monetary policy will strengthen the recovery. They said the government must now focus on turning plans into action.
Agrawal concluded by saying that if the government and private sector work together, Nepal can overcome current difficulties and move toward sustainable growth.
Conclusion
Nepal’s economy is at a critical stage. The country faces several challenges, including slow recovery, limited credit flow, and declining business confidence. However, the recent dialogue between the Nepal Chamber of Commerce and the IMF shows a shared willingness to find solutions.
With a clear roadmap, strong collaboration, and effective execution of the new budget and monetary policy, Nepal could unlock new opportunities and revive its growth momentum.
For more: Nepal Economic Outlook 2025
