World Business Report Nepal’s first female PM faces many economic challenges
Sep 12, 2025
Chris Lowe, Chief Economist at FHN Financial, provides insights into Nepal's first female Prime Minister, Sashila Kharki, facing immense economic challenges amid political upheaval and anti-corruption protests. The discussion covers the impact on youth employment, public trust, and foreign investments. There are also revelations about India's trade negotiations with the EU and the US, alongside a harrowing account of a South Korean worker involved in immigration raids in Georgia. The conversation underscores the complexities of global trade in today's turbulent economic climate.
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Trust Crisis After Protests
- Nepal faces a major trust and reconstruction challenge after Gen Z-led protests toppled the government and damaged public and foreign investment-backed property.
- Restoring investor and citizen confidence will take time and is essential for economic recovery.
Relying On Remittances And Tourism
- Remittances and tourism are Nepal's main revenue sources, but both are fragile and seasonal.
- The country should explore sustainable development paths beyond construction-led growth, leveraging natural resources and climate resilience.
Mobilise Remittances Into Investment
- Build trust in the financial system so households will invest remittance income rather than hoard cash.
- Use stronger banks and transparent channels to mobilise savings into higher-return public and private projects.