Submit your Article

Experts have urged Nepal to urgently shift toward equity-based investment and implement regulatory reforms, warning that ‘free capital’ inflows will begin to disappear after 2026, when the country graduates from the Least Developed Countries (LDCs) category.

“The era of free money ends,” said Calvin St. Juste, Special Envoy for Investment of the Federation of St. Kitts and Nevis, during a high-level roundtable meeting in Kathmandu on Sunday, reads a statement issued by Asian Institute of Diplomacy and International Affairs (AIDIA).

The event, organized by the Asian Institute of Diplomacy and International Affairs (AIDIA), brought together senior banking leaders, media representatives, and economic analysts to assess Nepal’s investment landscape, its credit rating trajectory, and opportunities arising from shifting global financial currents.

 “Grants fade, and loans cannot sustainably replace them. Equity can,” he added.

The Envoy encouraged Nepal not to fear its forthcoming graduation from LDC status, but instead view it as an inflection point.

He argued that Nepal should shift from loans to equity-based financing, particularly in sectors like hydropower where domestic capacity is strong but international capital remains essential.

“Political uncertainty is temporary,” he said, adding that challenging or not, this is the moment to bring investors in.

St. Kitts and Nevis ranked among Nepal’s top five foreign direct investment (FDI) sources in 2020-21 in the Nepal Rastra Bank’s report.

Addressing widespread misconceptions around ‘tax haven’ jurisdictions, speakers emphasized the importance of distinguishing competitive tax policy from illicit financial practices, according to the statement.

Addressing the persistent label of ‘tax haven,’ he urged Nepal to reframe the global narrative. “Tax competitiveness is not illegal,” Calvin said, adding that tax avoidance is legal; tax evasion is not. “Don’t be fearful of designing a system that allows your economy to survive.”

Calvin shared the experience of St. Kitts and Nevis, which endured bankruptcy in 2005 after decades of dependence on the sugar industry. The turning point, he explained, came when the country shifted from reliance on commodities and concessional aid toward attracting FDI and building investment-driven resilience.

Calvin, on the occasion, also highlighted the structural similarities between the two nations. “Nepal is landlocked, whereas St. Kitts is sea-locked,” he said, adding “In different ways, we are both small states whose destinies can be profoundly shaped by external forces.”

Referencing a recent Fitch report, that Nepal got BB- ratings, pointed to growing investor hesitation due to political unpredictability, he said Nepal should take the ratings advantage. “As investors, you cannot control politics, but you can control risk.”

He also urged Nepal to proactively address systemic vulnerabilities.

On the occasion, Ram Kumar Tiwari, CEO of Nepal SBI Bank informed that investors have begun pulling back due to current political uncertainty, the statement further reads.

Likewise, Ananda Jha, CEO of CARE Ratings Nepal Ltd highlighted Nepal’s own structural challenges, including conflicts across multiple regulators – Nepal Rastra Bank (NRB), Securities Board of Nepal (SEBON) and Electricity Regulatory Commission (ERC) – which often lead to fragmented or convenience-driven policy outcomes.

Despite a growing capital market and rising entrepreneurial activity, the country lacks meaningful international access, he said.

Apart from concerns around liquidity scarcity and investor skepticism, participants also pointed to rigid labor policies and a prevailing working culture misaligned with global productivity expectations.

While acknowledging the value of an eight-hour workday, they stressed that technology and Artificial Intelligence (AI) now enable output many times greater without extending hours.

High tax rates – corporate taxes of 20% to 25% and personal taxes up to 39% – are also flagged as deterrents to large-scale investment in Nepal. Participants also questioned the justification for high taxes without visible improvements in public services, underscoring the importance of customer-centric governance.

Sudyumna Prasad Upadhyaya, Sanima GIC CEO, during the discussion highlighted the insurance and reinsurance companies’ performance and profitability in the Caribbean including St Kitts and Nevis.

Two persons were critically injured after being attacked by a bear at Khalchet area in Rasuwa district today.

The injured have been identified as  Man Bahadur Tamang (65) of Naukunda Rural Municipality and Shiva Prasad Gajurel (50) of Kalika Rural Municipality-5.  

The bear that came out from Langtang National Park attacked them while they were collecting grass on private land, said locals. 

Both of them have been referred to Kathmandu for further treatment, shared Deputy Superintendent of Police Hem Bahadur Shahi.

Assistant Sub-Inspector (ASI) of Nepal Police Pushkar Karki has been arrested on charge of killing his four-month-old son.

Karki was arrested from Nagdhunga while he was fleeing the incident site, Sinamangal, Kathmandu, according to Pavan Kumar Bhattarai, Superintendent of Police and Spokesperson of District Police Range, Kathmandu.

"We arrested Karki for his involvement in killing his infant son. He was held from Nagdhunga and further investigation is underway," SP Bhattarai said, adding that Karki strangled the infant to death.

Further information would be revealed after the investigation, he added.

Nagdhunga-Malekhu road section would be partially closed for a week for upgrading tasks.

The Nagdhunga-Muglin road project is closing the vehicular movement for five hours from 10:30 am-3:30 pm every day from December 10-16.

The vehicular movement would be closed from Piplamod from Nagdhunga and Pokharebhir area.  The Road Project urged people to use alternative routes during the period.

Small and middle-size vehicles could use the Sitapaila-Bhimdhunga-Ramkot-Dharke road section. Similarly, a route from Samakhusi-Tokha-Chhahare-Galchhi as well as another route Jarekhet-Trishuli-Ghatbesi bridge could be used as alternative routes during the period.

Upgrading the Nagdhunga-Naubise section of the Tribhuvan Highway is in the phase of completion after blacktopping.

Engineer of the project, Keshav Ojha, said the road section would be partially closed as very heavy equipment and supplies should be mobilized at a time which might increase risk of accidents.