Financing Options For Private Sector Growth

Nepal has embarked on an ambitious journey to achieve middle-income status by 2030 through the accomplishment of the Sustainable Development Goals (SDGs). The 15th Development Plan has prioritised agribusiness, tourism, energy, industry and business segments as key sectors that are crucial for powering Nepal’s economic growth. Private investment has played an important role in the country’s economic development. However, private capital investment remains low, with overall Private Fixed Capital Formation-to-GDP standing at just 23 per cent in 2020 (World Bank). According to Nepal’s National Planning Commission, the financing gap for SDGs in the private sector is estimated to be Rs. 367 billion. Proliferation of actors