Economist and analyst Arun Kumar Subedi firmly challenges the announcement, labeling it a daydream. "It is a good thing to introduce a policy, but do Nepali companies have the minimum capacity to be listed on foreign stock exchanges?" he questions, emphasizing that the government has failed to lay the necessary groundwork.
The Massive Compliance and Size Gap
Listing on world-class platforms like the New York Stock Exchange (NYSE), Nasdaq, or the London Stock Exchange (LSE) is not just a matter of regulatory permission. It requires strict benchmarks that Nepal's corporate sector is far from meeting. While global
CRITERIA FOR INTERNATIONAL LISTING vs. NEPAL'S REALITY
┌─────────────────────────────────────────────────
│ Global Requirement │ Nepal's Current Status
├────────────────────────────────────────────────
│ Billions in Market Cap │ Dominated by small, regional companies
│ Strict Corporate Governance │ Weak institutional frameworks
│ IFRS/GAAP Financial Reporting │ Inconsistent international compliance
│ High Business Credibility │ Limited regional exposure
└───────────────────────────────────────────────
For instance, Nepal’s listed hydropower sector consists primarily of small, regional, run-of-the-river projects generating just a few megawatts. These micro-scale operations hold virtually zero appeal for international investors accustomed to multi-billion-dollar conglomerates.
Even Nepal’s commercial banks—widely considered the backbone of the domestic economy—lack the muscle for the global stage. Subedi points out that no Nepali bank currently has the capacity to seamlessly operate and disclose its capital in U.S. dollars.
- Capital Size: While large by domestic standards, the capital base of Nepali banks is minuscule on a global scale.
- Forex Restrictions: Nepal’s tight foreign exchange controls and the non-convertible status of the Nepali Rupee (NPR) severely restrict international financial reporting.
- Regulatory Suffocation: Domestically, companies struggle under the cumbersome, control-oriented rules of the Securities Board of Nepal (SEBON) and Nepal Rastra Bank (NRB). If companies cannot navigate local red tape smoothly, surviving the brutal regulatory compliance of foreign watchdogs is highly improbable.
If the government genuinely wishes to see Nepali entities on foreign boards, it must first execute a sweeping overhaul of its industrial and infrastructure policies. The international market demands high-value sectors and mega-projects, such as:
- High-Tech Manufacturing: Attracting global giants like Taiwan Semiconductor Manufacturing Company (TSMC) to establish local operations.
- Public Infrastructure Monetization: Converting massive state assets—like the 1,000-km Mahendra Highway or international airports—into public limited companies.
- Mega Hydropower & Tech Reservoirs: Opening massive multi-billion-dollar projects (like the Koshi or Karnali high dams) and large-scale data storage facilities completely to private and international capital.
The ultimate irony of the 2083/84 budget policy lies in its defensive domestic stance. The government is attempting to pitch small Nepali companies to global investors abroad while simultaneously restricting Foreign Institutional Investors (FIIs) from easily entering Nepal’s own secondary market.
"It is practically incompatible to talk about restricting foreign investors at home while expecting foreign markets to welcome Nepali companies. It is purely publicity-oriented." — Arun Kumar Subedi
On paper, Point 36 is an attractive, reform-minded statement. In reality, it is a hollow promise. Opening a legal pathway is meaningless without a thriving industrial ecosystem capable of producing multinational-grade companies. Until Nepal fosters an environment that builds transparent, dollar-compliant, and large-scale enterprises, global listing remains an impossible goal.
