Nepal’s economy at a critical juncture, says Chamber of Commerce Chair

KATHMANDU: Nepal’s economy is currently at a critical turning point, warned Kamlesh Agrawal, Chair of the Nepal Chamber of Commerce (NCC), during the 16th Annual General Meeting of the Nepal Economic Journalists’ Association.

Speaking at the event, Agrawal highlighted several pressing challenges facing the country’s economic landscape.

He pointed out a lack of investable capital in the private sector, excessive liquidity in the banking system, and difficulties in managing declining interest rates.

In addition, he noted uncertainty in the investment climate and pressures on revenue collection.

“While the private sector and the government are reportedly working together, the question remains: how long will the interim government last?” Agrawal asked. He expressed concern that policies introduced by the interim administration are sometimes inconsistent with existing laws and may be overturned by a future permanent government, putting private sector investments at risk.

Agrawal also cautioned against misinformation and unverified reports in financial journalism, which can create market instability. He emphasized the need for coordinated action: “The government formulates policy, the private sector drives the economy, regulators maintain discipline, and journalists ensure transparency. Without the collaboration of these four pillars, sustainable economic growth is impossible.”

He further warned that the private sector cannot remain resilient indefinitely under current conditions. Structural economic reforms—such as boosting export growth and increasing productivity—are urgently needed to stabilize and strengthen the economy.

Agrawal’s remarks underscore growing concerns over Nepal’s economic trajectory, highlighting both short-term challenges and the critical need for long-term structural reforms to ensure sustainable growth.