NAIMA chair Ritu Singh Baidya has highlighted that Nepal’s biggest business problem is the lack of trust between the state and the private sector. Speaking at a NAIMA Mobility Dialogue in Kathmandu, she emphasized that the government and private sector must build mutual trust to encourage investment and economic growth.
Baidya argued that financial crimes and criminal offences must be treated separately, and that unclear laws and weak legal protection are making investors cautious. She noted that the government does not fully trust the private sector, and vice versa, creating a culture of suspicion rather than welcoming investors.
Instead of trying to do everything at once, Baidya called for focus on areas where Nepal has a comparative advantage, such as IT, tourism, high-value crops, and new industries linked to hydropower. She pointed out that Nepal should not compete on cost and distance but focus on sectors where these factors matter less. "We are developing a capable workforce for the IT sector. Young people can become entrepreneurs instead of only looking for jobs," she said.
Tourism was highlighted as an important source of foreign income and employment. Baidya said private investment in tourism infrastructure could create jobs on a large scale while bringing more money into the country. She urged Nepal to explore high-value agricultural products instead of focusing only on traditional crops, citing examples like figs and almonds.
Baidya also stressed the importance of increasing domestic electricity use rather than relying mainly on power exports to neighboring countries. She advocated for adopting technologies such as green hydrogen and ammonia to decarbonize industries like cement and steel.
Furthermore, Baidya emphasized the need to attract foreign direct investment (FDI) by improving the investment environment. She noted that FDI brings not only capital but also international knowledge, technology, and new opportunities for development. According to her, faster policy reform is needed to improve confidence among domestic investors first, because weak local confidence makes external investment harder to bring in.
She warned that continued delays in policy reforms could weaken investor confidence and eventually have a negative impact on the economy. Baidya urged the government to make policies and regulations more investment-friendly to strengthen confidence among domestic investors, which is crucial for attracting foreign investors.
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