Private sector welcomes election mandate, Sees opportunity for political stability and policy reforms

KATHMANDU: Nepal’s private sector has welcomed the latest parliamentary election results, saying the strong mandate delivered by voters could finally bring the political stability, policy continuity, and governance reforms long demanded by businesses and investors.

For years, entrepreneurs, industrialists, and investors have repeatedly raised concerns about the lack of political stability and frequent government changes, arguing that shifting policies and bureaucratic uncertainty have weakened Nepal’s investment climate and discouraged entrepreneurship.

Business leaders say the new electoral outcome appears to have delivered precisely the kind of stable political mandate the country’s economic stakeholders have been demanding for years.

The election held on March 5, 2026 (Falgun 21, 2082 BS) has given the Rastriya Swatantra Party not only a clear parliamentary majority but potentially close to a two-thirds majority, raising expectations that a single party government could govern for the full five-year term.

The result has generated optimism across Nepal’s business community, which believes that a stable government could ensure consistent policies, faster decision-making, and stronger accountability in economic governance.

Private Sector Welcomes Stability

According to Chandra Prasad Dhakal, the election outcome reflects exactly what the private sector had been advocating.

“Over the past five years, Nepal has seen as many as three different governments, each introducing different policies. That made it extremely difficult for businesses to plan long-term investments,” Dhakal said.

“We have consistently said that Nepal needs political stability. This time the people have clearly delivered that mandate. We welcome the election result.”

Dhakal said the private sector hopes the new government will focus on investment promotion, economic reforms, and good governance, areas that were central themes during the election campaign.

The Federation of Nepalese Chambers of Commerce and Industry has long argued that policy unpredictability, bureaucratic hurdles, and corruption networks have discouraged business expansion and weakened investor confidence.

Entrepreneurs say that in many cases, operating a business in Nepal has required political protection or informal networks, a cycle that they believe must be broken through institutional reforms and transparent governance.

Policy Continuity Key to Investment Climate

Industry leaders emphasize that policy continuity is crucial for economic growth, particularly in sectors such as hydropower, tourism, infrastructure, digital services, manufacturing, and export-oriented industries.

When governments change frequently, many reforms stall midway. Laws may be amended by one administration but remain unimplemented because the next government does not prioritize drafting the necessary regulations or implementation frameworks.

Business leaders say this pattern has slowed reforms even when political leaders initially expressed commitment to change.

Birendra Raj Pandey, president of the Confederation of Nepalese Industries, said a stable government could significantly accelerate economic reforms.

“Many of the issues the private sector has been raising — regarding laws, regulations, and policy commitments — have already been included in political manifestos,” Pandey said.

“The key question now is implementation. Since the voters have given a clear mandate, the responsibility for delivery is equally clear. If implementation improves, the results could benefit the country, citizens, industries, and the private sector.”

Pandey added that the next phase of economic reform must focus on fast-track legal amendments, regulatory efficiency, and stronger public-private collaboration.

Hope for Governance Reforms

Beyond policy stability, the private sector also sees the election result as a potential turning point for governance reforms and institutional accountability.

Business leaders have long argued that corruption, administrative delays, and inconsistent regulatory enforcement have made it difficult to operate businesses efficiently.

With a strong parliamentary mandate, the incoming government is expected to face greater public scrutiny and responsibility to deliver results, which could push institutions toward more transparent and efficient governance.

Industry leaders believe that if the government maintains policy consistency for the next five years, Nepal could see improvements in foreign direct investment (FDI), domestic industrial expansion, infrastructure development, and job creation.

The private sector has also expressed readiness to work closely with the new government to design pro-investment policies, regulatory reforms, and economic recovery strategies.

Business leaders say the latest election result has created renewed optimism within Nepal’s business community, with many hoping the coming years could mark a shift toward stable governance, predictable economic policies, and stronger investment growth.