Business in Nepal, Economy and Currency
Nepal is generally considered to be one of the poorest nations in the world. The majority of the population live in rural areas and make their income (if any) from working agricultural lands. The country is also landlocked which makes it difficult or expensive to transport goods to other countries. However, import and export is encouraged by the government in order to promote good business and encourage growth which will hopefully result in a higher employment rate, higher salaries and a better standard of living for all in time.
Nepal’s capital is Kathmandu – a city with over one million people. There are several other sizable cities, most of which are located in the southern Terai districts right next to India’s border. Many of the people in the country have a poor level of education, suffer from bad health and earn very little money. The potential for economical growth in the country is seen as being in agriculture, export-orientated manufacturing, hydropower generation and tourism. Unfortunately it is unlikely that this potential will ever be realized locally due to lack of funding. Major investments by the public and private sectors are needed.
While government has taken many positive steps such as creating policies that free up trade and establishing a convertible currency, the country still remains heavily reliant on agriculture which means that bad weather can result in a bad gross national product. Noting this trend, the government has taken steps towards more sustainable growth by focusing on encouraging other countries and firms to invest in hydropower development and exports. They have developed a well-thought-out program which should, in time, see the economy go from strength to strength. The principle growth sectors are in tourism, transport, telecommunications and hydropower generation. If you want to invest in Nepal, now is the time to do it.
Last updated: January 22, 2019