‘No targeted crackdown on private sector’: Finance Minister Wagle defends investigations and Reform

KATHMANDU: Finance Minister Swarnim Wagle has strongly clarified that the government’s ongoing investigations into financial crimes are not aimed at targeting the private sector, amid rising concerns and panic in Nepal’s stock market.

Speaking at an interaction with the Society of Economic Journalists Nepal, Wagle emphasized that all enforcement actions—including those related to asset laundering—are based on long-standing investigations supported by credible evidence, not political motives or selective targeting.

“We believe in an open market economy, but that does not mean a lawless economy,” Wagle said, underlining the government’s dual approach of promoting private sector growth while enforcing financial discipline.

He made it clear that the government has no intention of harassing businesses or conducting arbitrary crackdowns. “There will be no impunity for financial crimes, but there is also no policy to target or intimidate the private sector,” he stated.

According to the minister, many of the current cases under investigation have been in process for years and have now reached advanced stages based on documentary and financial evidence. He stressed that the rule of law will prevail, with final judgments delivered through the judicial system rather than executive overreach.

Market Panic Driven by Misinterpretation

Wagle acknowledged that recent enforcement actions have triggered fear in financial markets, particularly in the Nepal Stock Exchange, but argued that much of the panic is rooted in misinterpretation and rumor.

“There is a narrative being built that the government is cracking down on investors. This is not true,” he said, adding that small and genuine investors should not feel threatened.

He reiterated that participation in the stock market does not expose individuals to arbitrary scrutiny regarding the source of funds. Only cases involving clear violations—such as insider trading, market manipulation, or illicit financial activities—will face legal action under existing laws.

Stock Market Remains Transparent and Digitally Traceable

Highlighting the structural strengths of Nepal’s capital market, Wagle described the stock trading system as one of the most transparent sectors in the country. With a fully digital, paperless mechanism—where transactions are routed through banking channels, taxes are automatically recorded, and ownership changes are traceable—the system offers high levels of accountability.

The government, he said, views the stock market as a model for digital governance, with Prime Minister Balendra Shah aiming to replicate similar digital frameworks across other sectors.

Reforms and ‘Golden Days’ Ahead

Seeking to restore confidence, Wagle urged investors not to panic over short-term market volatility, noting that the government has a long-term reform agenda for the capital market.

Plans include studying and implementing recommendations from NEPSE restructuring reports and executing policy commitments outlined by the ruling Rastriya Swatantra Party, particularly those focused on capital market liberalization and investor protection.

“This government has a long runway. Market fluctuations over a week should not create panic. Golden days are ahead,” he said.

Grey List Exit and Economic Credibility

On the broader economic front, Wagle identified removing Nepal from the international financial “grey list” as a top priority. He warned that the grey listing has harmed Nepal’s global reputation and negatively impacted investment inflows.

The minister said the government has moved beyond commitments and is now actively implementing compliance measures, particularly in areas related to anti-money laundering and financial transparency.

Balancing Enforcement and Growth

Wagle concluded by stressing that Nepal’s economic policy will continue to balance enforcement with growth. While financial crimes will be prosecuted strictly, the government remains committed to creating a business-friendly environment.

“We support the private sector and believe in open markets. But that openness must be governed by rules,” he said.

The statement comes at a crucial moment for Nepal’s financial markets, where restoring investor confidence will depend heavily on clear communication, regulatory predictability, and visible commitment to both reform and fairness.