The initiative, titled the 'Capital Market Strengthening and Share Market Reform Plan,' aims to restore investor confidence and stabilize the financial sector. The downturn has erased approximately Rs 700 billion in market capitalization, directly impacting individual wealth and overall private sector morale. Finance Minister Swarnim Wagle stated that the upcoming package is part of a broader economic recovery strategy following recent economic setbacks and natural disasters.
This stock market plan represents the second phase of the government's multi-tiered economic response. The Ministry of Finance previously rolled out a relief package for entrepreneurs directly affected by recent floods and avalanches, which included low-interest loans at a 0.5 percent point premium, debt restructuring, tax waivers, full customs duty exemptions on the re-importation of destroyed commercial vehicles and machinery, and extended tax filing deadlines.
In addition to the upcoming stock market measures expected to be announced this week, the Ministry is advancing three additional strategic packages:
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Private Sector Investment Revival: Targeted consultations with private sector stakeholders will begin next week to craft measures encouraging business investment.
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International Resource Mobilization: A comprehensive damage assessment report is underway to secure international financing for large-scale post-disaster reconstruction.
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FATF Grey List Exit Strategy: Legal and policy reforms are being fast-tracked to remove Nepal from the Financial Action Task Force grey list and safeguard international financial transactions.
Market participants are closely monitoring the Ministry of Finance this week as specific policy provisions and immediate support mechanisms for the stock exchange are finalized and made public.
