$100 Billion Economy Achievable with Sectoral Prioritization: Private Sector

Nepal can achieve a $100 billion economy and double-digit economic growth if the government prioritizes eight key sectors, the Confederation of Nepalese Industries (CNI) said on Tuesday.

Speaking at the 22nd annual general meeting of the CNI held in Kathmandu, CNI President Rajesh Kumar Agrawal stated that focused efforts in infrastructure, energy, information technology, manufacturing industries, tourism and health, agriculture, mining and minerals, and education would make this ambitious target attainable.

Agrawal highlighted that Nepal is currently facing a shortage of skilled manpower and disparities in skill levels, both of which need to be addressed to drive economic growth. He emphasized that investment in infrastructure is essential to achieve high economic growth.

He also announced that the “Make in Nepal – Swadeshi” initiative has received a collective trademark status, which is expected to encourage domestic industries participating in the campaign.

On the macroeconomic front, Agrawal cited encouraging indicators such as foreign exchange reserves and balance of payments. According to data from the first eleven months of the current fiscal year, Nepal’s foreign exchange reserves stand at Rs 2569.38 billion — sufficient to sustain 14.7 months of imports of goods and services.

“Inflation is also under control,” said Agrawal, adding, “As of mid-May, inflation stood at just 2.77 percent.” Inflation further dropped to 2.72 percent in mid-June 2025.

He further noted that banks and financial institutions have over Rs 650 billion in loanable funds, and interest rates have dropped to single digits.

However, Agrawal expressed concern that despite these favorable conditions, overall demand in the economy has not picked up, which has discouraged borrowing and investment by industrialists and entrepreneurs. He identified weak demand as the biggest challenge currently faced by the economy.

He also pointed out that industrial production has not increased as expected, partly due to irregular electricity supply, which has, in turn, raised production costs.

Nepal can achieve a $100 billion economy and double-digit economic growth if the government prioritizes eight key sectors, the Confederation of Nepalese Industries (CNI) said on Tuesday.

He also announced that the “Make in Nepal – Swadeshi” initiative has received a collective trademark status, which is expected to encourage domestic industries participating in the campaign.

“Inflation is also under control,” said Agrawal, adding, “As of mid-May, inflation stood at just 2.77 percent.” Inflation further dropped to 2.72 percent in mid-June 2025.

He further noted that banks and financial institutions have over Rs 650 billion in loanable funds, and interest rates have dropped to single digits.

He also pointed out that industrial production has not increased as expected, partly due to irregular electricity supply, which has, in turn, raised production costs.