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Government Changes But Nothing Will Change

August 03, 2016

What We Need to Know For Nepali Business And Economy


Nepal’s New Prime Minister is Pushpa Kamal Dahal, who served his first term from August 18, 2008 to May 25, 2009 (just over 9 months) and now again he is going to serve the term for another 9 months under a power sharing agreement with Nepali Congress.


This is a government of convenience like the ones in the past, will spend more time in power struggle


A short tenure government cannot think of long term plans, while tall promises will be made, as in the past the delivery will be weak


To expect further delay in addressing the issue of rebuilding, helping victims of earthquake and other natural disasters


No major policy changes is expected and all major legislation in pipeline will continue to get stuck


Few reshuffles in bureaucracy, a new National Planning Commission and attempt to change some of the previous political appointees will add to already delayed work


With government focusing on protecting against verdicts of Truth and Reconciliation Committees, focus on economy and development issues will not be a priority


Domestic cartels and syndicates will continue to grow, increasing their footprint which means foreign investments will stay out. This will also continue Nepali business practices to be inward looking rather than integrating with the outside world


UML as an opposition party is known to organize strikes and disruption, which means days of disruption in educational institutions, business and daily life to be expected.


When Sher Bahadur Deuba will take over as the Prime Minister 9 months from now, the above will still be valid, so may not need to rewrite.