Emerging Business Environment In Nepal

Nepal is included in the list of the least developed countries. The responsibles causes for the Nepal to be least developed countries are;

• Not to appear in the world arena till 1950,

• Not to develop basic infrastructure,


• To be geographically landlocked,


• Not to be dedicated in development etc.

But Nepal has been marching towards industrialization in a planed way for the last some years. It has entered in the 10Th plan.Nepal has adopted mixed economy. It has adopted the policy of free market and economy liberalization after 80s. It has already privatized some of the state owned public corporation.Nepal government has also adopted the policy to hand over state owned enterprises to private sectors expect those related to defense and other basic needs.The government has made no policy to nationalize any private company.

The social awareness of Nepalese people has already risen high. Consumers are conscious. consumer's forum, environment protection forum etc. are active. So Nepal civil society has awakened. Nepal has remained active in different international forum. Nepal has expressed its commitment in different international issues. Employee's participation us increasing in decision making process. High level technology and methods have transferred. So private sector investment is increasing in core industries. Private sector is developing and multinational companies are appearing.

1. Increase of private investment in core industries:Nepal's core industries such as electricity, communication, transportation etc. were conducted only by the government. But now the government has adopted open door policy in all the sectors including these sectors except those related to defense and very important basic needs. This has paved the way towards industrialization. As a result private investment in hydro power, communication and other sectors is increasing.


2. Development of private sectors:Economic reform program has shown symptoms in economic sectors mainly in the private sectors. Private sectors has gone ahead in sectors of hydro power, airlines, communication, road, water supply, food and drinking water, banking and financing companies, hotel, small and cottage industries, services industries etc.


3. Appearance of multinational companies:Nepal has adopted the policy of open market and economic liberalization. It has forwarded special policy to attract foreign investment. So, the foreign investor have entered Nepal through multinational companies. Now hotels, banks, hydro power projects, nursing homes, finance companies etc are being run in joint venture with the members of WTO. Globalization has begun to influence Nepal's business environment.