Experts Call for Sweeping Reforms to Achieve $100 Billion Economy Target

Experts have stressed the need for sweeping reforms in Nepal’s economic policies to achieve the ruling Rastriya Swatantra Party’s (RSP) ambitious target of expanding the economy to USD 100 billion. Speaking at the 10th NewBiz Conclave and Business Excellence Awards 2026 organized by New Business Age Ltd on Friday, panelists said the current growth rate of less than 4 percent over the past three years is insufficient to reach the goal.

The panel discussion, themed “Reset, Reform, Rise: Charting Nepal’s Growth Path”, highlighted that the RSP’s election manifesto pledged to transform Nepal into a respectable middle-income country by maintaining an average annual growth rate of 7 percent over the next five years. Based on this projection, per capita income would exceed USD 3,000 within 5–7 years, bringing the economy close to the USD 100 billion mark.

The government has also endorsed this target in its Economic Status Paper 2082. Experts argued that achieving it requires abandoning outdated practices and policies, restructuring the policy framework, accelerating digital transformation, and creating an investment-friendly environment. They emphasized boosting domestic investment, expanding digital infrastructure, increasing energy production and consumption, building data centers, and reforming government service delivery.

Investment Barriers and Reforms

Dolma Impact Fund CEO Tim Gocher said foreign investors face policy hurdles ranging from bringing capital into Nepal to repatriating dividends. “The biggest obstacle is the lack of assurance that investors can repatriate profits and capital,” he noted. Gocher stressed that Nepal must send a strong message to global markets that it is a safe and reliable investment destination. He also pointed to Nepal’s cold climate, abundant hydropower, and software development talent as factors that could position the country as South Asia’s data processing hub, provided the government ensures data security and establishes special economic zones.

National Planning Commission member Sudan Jha said the government has already begun a “reset” by shifting from process-oriented to results-oriented governance. He revealed plans to prioritize digital sovereignty by building a national data center and creating a National Data Exchange Layer to integrate all government services on a single digital platform. Jha added that Nepal needs a separate tax and incentive policy for the IT sector, which currently sells services at very low rates. He also highlighted the importance of digital literacy, noting that while people know how to upload videos on TikTok and Facebook, awareness of how to benefit from digital services remains limited.

Finance Secretary Ghanshyam Upadhyay acknowledged that outdated laws and complex administrative procedures have hindered investment. He said the government is amending laws, including the Foreign Investment and Technology Transfer Act, following the recent investment summit. He confirmed that the Ministry of Finance and Nepal Rastra Bank are coordinating at a high level to resolve the long-standing issue of investment repatriation. “The government has taken the exit problem seriously and is working to ensure investors can repatriate profits and capital smoothly,” he said.

Legal and Policy Stability

Anupraj Upreti, managing partner of Pioneer Law Associates and moderator of the session, said Nepal needs policy stability and a clear legal framework to attract investment. He emphasized that foreign investors seek assurance of repatriation rights and that reforms are essential. Upreti argued that the private sector should be treated as a partner in economic growth rather than merely a tax-paying entity.

He noted that private equity and venture capital (PEVC) industries are expanding in Nepal but still face regulatory challenges. “There is a lack of coordination among agencies in approving investments, bringing in capital, and allowing repatriation,” he said. Upreti stressed the need for predictable policies and long-term trust-building to attract foreign capital. He added that startups and new businesses require alternative financing sources beyond the banking system, making PEVC increasingly important.

Upreti also pointed out that inadequate consultation with the private sector during lawmaking often leads to implementation problems. The panel discussion underscored that investment climate reform, foreign investment facilitation, private equity and venture capital expansion, and policy restructuring are critical to achieving Nepal’s economic ambitions.