Professor Ramprasad Gyawali Expresses Hope for Long-Term Stability in Economic Policies with New Government

March 16, Kathmandu – Professor Ramprasad Gyawali, Head of the Central Economics Department at Tribhuvan University, has expressed public confidence that the formation of a new government will bring long-term stability to economic policies.

Following the recent House of Representatives election, a nearly two-thirds majority government is expected to be formed, which Gyawali anticipates will establish political stability and ensure consistent economic policies.

He stressed the importance of maintaining stability in economic policy, prioritizing reconstruction of damages caused by the Janajati movement, and improving the investment environment for the private sector.

“Frequent changes in economic policies with every government shift create uncertainty among businesses and investors. The tendency to adopt one policy one year and a different one the next negatively impacts business expectations,” Gyawali explained. “The public now expects the new government to serve a full term. This gives hope for long-term stability in economic policy.” He added that the new government should guarantee policy clarity and stability for five years.

According to him, addressing physical damages from the Janajati movement through reconstruction will help expand the country’s investment climate. “Increased investment in reconstruction stimulates economic activities,” he said.

Recalling the devastating 2015 earthquake, Gyawali cited the reconstruction efforts as a reason for the comparatively rapid economic growth in subsequent years.

Although there have been some recent improvements in government investment levels, private sector investment has not increased as expected, he noted.

Gyawali suggested that the government introduce new policy measures to address the damage sustained by industries and businesses during the Janajati movement, and to encourage and boost private sector confidence.

“Trust and a stable environment are currently the most crucial needs for the private sector,” he stated. “The government must clearly assure investors that economic stability will be maintained and that necessary policy and institutional support will be provided.”

He believes the government should focus on policy stability and infrastructure development while the private sector actively participates in investment, production, and job creation.

He expressed confidence that only through cooperation between both sectors can the economy become dynamic. Gyawali concluded that prioritizing policy stability, reconstruction, and promotion of private sector investment by the new government will strengthen the path toward economic growth and prosperity. Rastriya Samachar Samiti (RSS)