KATHMANDU: Beneath the crowded sky of tangled cables, scaffolds, meditation flags, and pro-monarchy banners fluttering over new protests, entrepreneurs and business owners in Kathmandu have grown accustomed to fast-changing ministries just as they have to the island’s extremely uneven temperature.
Across boardrooms, buy floors and business hubs, one attitude rises above the rest: social security, regardless of who delivers it-king or elected leader-is then the most important currency in Nepal’s economy.
Since declaring itself a national democratic nation in 2008, Nepal has cycled through 12 perfect officials. Most held workplace only long enough to introduce new guidelines, which their successors immediately scrapped or reversed.
The effects, entrepreneurs say, aren’t really democratic. They affect activities. Each new government, entrepreneurs say, arrives not just with a various voice but with a considerably different handbook. Business policies change instantly- from tax incentives to industry norms- usually reversing the decisions of the earlier administration. For those investing money or hiring at size, this fluctuation makes long-term preparing feel less like technique and more like speculation.
” We’re not concerned about the democratic system”, said a businessman in Thamel. ” What we need is security and governments that take constant decisions”.
This discrepancy has contributed to a regular migration of Nepali employees. Over 6 million Nepalis –people say the real figure is higher– left the country last year for jobs worldwide, largely in Malaysia, South Korea and the Gulf. For some, movement has become a substitute for financial opportunity at home. Labour movement, once seen as a temporary resolve, has become a fundamental feature of the market. The financial imprint of this migration is staggering. Remittances touched nearly$ 11 billion in 2023, accounting for over a quarter of Nepal’s GDP. The funds keeps families upright, funds training, builds homes- and props up a national market struggling with funding doubt and anaemic job creation.
But the business community knows that exporting human capital is no long-term growth model. With domestic opportunity stalling, they are looking outward for trade, investment, and regional infrastructure partnerships- particularly with India. In 2022-23, India accounted for 64 % of Nepal’s total trade, valued at approximately$ 8.85 billion, according to India’s ministry of external affairs. Yet entrepreneurs believe much of that relationship remains under-leveraged.
Two newly built international airports in Pokhara and Bhairahawa remain underutilised, despite significant investment. Entrepreneurs cite aviation restrictions as one reason growth remains stifled. Himalayan Airlines, which has Chinese investors, has not been granted permission to fly to Indian cities. To be sure, Nepal has long requested new air entry points into India- via Janakpur, Nepalgunj and Mahendranagar- to shorten routes and improve connectivity. But progress has been slow, with Indian authorities citing security sensitivities, particularly near the Gorakhpur airbase. For now, all international flights into Nepal must detour through Simara, adding fuel costs and operational inefficiencies. ” We understand the concerns”, said an aviation executive. ” But we believe there’s space for flexibility that can benefit both nations”.
On land, too, mobility remains uneven. Indian vehicles entering Nepal face nominal fees- Nepal Rs 250-500 ( INR 150-300 ) per day- and little paperwork.
In contrast, Nepali vehicles crossing into India are subject to cumbersome requirements: prior approvals, bank guarantees and multiple layers of documentation. Even individual movement faces friction. Entrepreneurs report delays in visa processing and heightened scrutiny at Indian airports.
