Nepal’s credit rating spurs reform calls

On the occasion of the 28th anniversary of the Society of Economic Journalists-Nepal (SEJAN), an interaction on managing the economy highlighted the importance of leveraging Nepal’s first sovereign credit rating. Speaking at the event held in Kathmandu on Saturday, economic stakeholders emphasized the need for strategic action to capitalize on the nation’s BB- credit rating, describing it as encouraging and full of potential benefits.  

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel hailed the sovereign credit assessment results as a matter of national pride, placing Nepal second in South Asia after India. Stressing the need to turn this achievement into tangible outcomes, he urged constructive criticism of the government and acknowledged responsibility for any recent economic challenges. “If issues have arisen since this government took office, I take responsibility,” he said, adding that positive developments and signs of progress are visible. He emphasized creating a conducive business environment to uplift private sector morale, warning that political instability remains a significant obstacle.  

Shivraj Adhikari, Vice-chairperson of the National Planning Commission, noted that Nepal’s sovereign credit rating has sparked a constructive debate and called for the discussion to focus on reform. He stressed the importance of identifying investment opportunities and fostering more dynamic economic discourse.  

Nepal Rastra Bank Governor Maha Prasad Adhikari acknowledged Nepal’s credit rating as a positive achievement but highlighted lingering economic challenges. He called for a balanced approach, emphasizing that dependence on monetary policy alone is insufficient. “All state agencies must contribute equally to correct the current situation,” he said.  

Economist Achyut Wagle criticized the government for its failure to identify new revenue sources, which he said weakens the state. Highlighting the decline in revenue as a percentage of GDP—from 24–25 percent to 12–13 percent—he expressed concerns over inadequate attention to non-financial management.  

Representatives from the private sector underscored the need for government action to raise their morale, despite some positive economic indicators. Sunil KC, President of the Nepal Bankers’ Association, described the credit rating as a remarkable achievement under challenging circumstances and urged the government to sustain it.  

Kamlesh Agarwal, President of the Nepal Chamber of Commerce, pointed to historical issues as the main factor behind the sector’s current challenges. Similarly, Rajesh Kumar Agarwal, President of the Confederation of Nepalese Industries, identified the economic slowdown as a pressing problem and suggested revisiting past policies to address unresolved issues.  

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, highlighted the private sector’s role in the government’s economic reform initiatives. He emphasized the need to review import restrictions, stating that such measures alone would not resolve the country’s economic problems.