Kathmandu: Under the disorganized horizon of tangled wires, scaffolds, prayer flags, and pro-pepper banners on recent protests, entrepreneurs and business owners in Kathmandu have become accustomed to rapidly changing ministries, as they are for the notorious weather of the valley.
Paarroom, shop flooring and beyond the startup hub, one feeling rises above the rest: political stability, no matter who whatever distributes it to the-cing or elected leader-is the most valuable currency in Nepal’s economy.
Since declaring itself a federal democratic Republic in 2008, Nepal has cycled through 12 Prime Ministers. The longest work is done to introduce fresh policies, which his heirs immediately reversed or reversed.
Results, entrepreneurs say, not just political. They affect operations. Each new governance, says entrepreneur, not only comes with a different tone, but also with a dramatic playbook. Professional policies suddenly shift – from tax encouragement to trade norms – often reverse the decisions of previous administration. For capital investors or to hiring on a scale, this instability feels less like a strategy and is more like estimates.
“We are not worried about the political system,” said a hotel businessman at Thomel. “What we want is stability and governance that take constant decisions.”
This incompatibility has contributed to a stable migration of Nepali workers. More than 6 lakh Nepal -People say that the correct figure is high -the last year left the country for jobs abroad, mainly in Malaysia, South Korea and Bay. For many people, migration has become an option of economic opportunity at home. Labor migration, once seen as a temporary improvement, has become a structural feature of the economy. The economic footprint of this migration is shocking. About $ 11 billion arrived in 2023 for more than a quarter of Nepal’s GDP. Money saves families, gives money to education, builds homes – and supports the uncertainty of investment and a national economy struggling with anemic employment generation.
But the professional community knows that exporting human capital is not a long -term development model. With domestic opportunity stalling, they are looking out for business, investment and regional infrastructure participation – especially with India. According to India’s Foreign Ministry, in 2022-23, India dated 64% of Nepal’s total trade, which cost around $ 8.85 billion. Nevertheless, entrepreneurs believe that most of that relationship is at least.
Two newly built international airports in Pokhara and Bhairahwa are low despite significant investment. Entrepreneurs cite aviation restrictions as one reason remains an increase. Himalayan Airlines, which have Chinese investors, are not allowed to fly in Indian cities. To ensure this, Nepal has long requested new air entry points in India – through Janakpur, Nepalganj and Mahendranagar – to shorten the routes and improve connectivity. But progress has been slow, Indian authorities citing security sensitivity, especially near Gorakhpur Airbase. For now, all international flights in Nepal should circle through Simara, adding fuel costs and operational disabilities. “We understand the concerns,” said an aviation executive. “But we believe that there is a place for flexibility that can benefit both countries.”
Even on the land, mobility remains uneven. Indian vehicle entering Nepal nominal fees – Nepal Rs. 250-500 (INR 150-300) per day-and small paperwork.
In contrast, Nepali vehicles crossing in India are subject to cumbersome requirements: pre -approval, bank guarantee and several layers of documentation. Even individual movement is friction. Entrepreneurs reported delay in visa processing and increased investigation at Indian airports.
