Bridge Collapses, EVs Surge, and Nepal Booms: Are We Ready for 2025?
Nepal is currently navigating a critical phase in its developmental trajectory, grappling with a mix of structural setbacks and economic opportunities. From infrastructure collapse and environmental risks to an unexpected surge in electric vehicle (EV) imports and new prospects in regional trade, the nation is experiencing both the weight of internal challenges and the promise of external engagement.
Infrastructure Concerns Amplified by Tamakoshi Bridge Collapse
A recent collapse of the Tamakoshi River bridge in Ramechhap has reignited public anger and cast fresh doubts over the sustainability and quality of Nepal’s infrastructure projects. This is not an isolated case, but rather a grim reflection of long-standing issues in project planning, execution, and oversight.
As rescue operations and damage assessments continue, calls for a high-level investigation into the causes of the collapse are growing louder. Infrastructure quality remains a major bottleneck for economic progress, particularly in remote districts where such lifelines are crucial for transport, commerce, and emergency response.
Weather Warnings and Environmental Strain
While infrastructural vulnerabilities dominate headlines, nature too has sounded its alarm. Nepal’s Department of Hydrology and Meteorology has issued alerts for heavy rainfall and possible snowfall across various hilly and mountainous regions. These warnings have raised concerns about flash floods, landslides, and disruptions to rural communities and agriculture.
Meanwhile, the Kathmandu Metropolitan City (KMC) is in search of an alternative dumping site, underscoring the growing environmental strain due to unregulated urban growth and poor waste management planning. The capital city continues to struggle with garbage overflow and sanitation issues, which have been compounded by seasonal monsoons.
EV Import Boom Raises Policy Concerns
In a surprising twist, Nepal has witnessed a significant increase in electric vehicle (EV) imports—even as financial institutions have reduced lending for EV purchases. Industry experts are now warning that the country risks becoming an “EV dumping ground” if proper regulatory standards are not urgently implemented.
Analysts note that many imported EVs do not comply with international safety and performance benchmarks, posing risks for users and undermining consumer confidence. The government is under pressure to formulate clear import guidelines, technical checks, and after-sales service regulations to prevent an overflow of substandard vehicles in the Nepali market.
Capital Market Shows Signs of Recovery
On the financial front, the Nepal Stock Exchange (NEPSE) rebounded after three consecutive days of losses, showing a double-digit gain. While this doesn’t signify a full recovery, it has sparked cautious optimism among traders and investors. The stock market, sensitive to political and economic indicators, remains a barometer of broader financial sentiment.
In a more celebratory vein, Nepal Foods earned international recognition by winning the Best Nepali Brand of the Year 2024 at the 9th Asian Food and Restaurant Awards, bolstering national pride in the hospitality and FMCG sectors.
Investment Promotion and Institutional Reforms
Efforts to attract foreign direct investment (FDI) are gaining momentum. The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has entered into a collaborative framework with the Investment Board Nepal (IBN) to promote investment-ready projects and improve investor confidence.
FNCCI is also undergoing a reform process to revise its organizational code of conduct, aiming to bring more transparency, efficiency, and governance accountability into the country’s largest business federation.
Media Influence and Political Undercurrents
On the political front, recent analysis has highlighted growing concerns over the role of Indian media in shaping Nepal’s domestic political narratives. Reports suggest that several platforms are promoting unverified stories favoring the return of monarchy, along with narratives suggesting that China would be isolated if monarchy returns to Nepal. This form of content manipulation is raising questions about digital sovereignty and the need for stronger media literacy and regulation.
World Bank Pushes for Service Sector Diversification
In an important economic insight, the World Bank has released a new report titled “Trade for Services Competitiveness”, identifying service sector trade as a key engine for Nepal’s economic diversification. The report outlines how enhancing trade in services—especially through regional integration and productivity tools—can help countries like Nepal build resilience against traditional export dependence.
With data tools like the Export Value Added (EVA) and Service Trade Restriction Index (STRI), Nepal can assess barriers and optimize service sector performance to drive inclusive growth.
Nepal’s Growing Role in Regional Trade and Events
In December 2024, Kathmandu will host “Showcasing Nepal & The Globe Trade Fair”, a high-profile event expected to attract international businesses and policymakers. This fair is projected to boost Nepal’s global trade visibility and promote its manufacturing and tourism potential.
Additionally, the Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) recently published its 2024 report, highlighting progress in sustainability, SME support, and trade facilitation across member states. Nepal’s participation in CACCI’s joint programs, including the Joint Regional Sustainability Survey with Singapore Manufacturing Federation (SMF), reflects its growing regional ambitions.
ASEAN and Digital Trade Inclusion
Nepal’s involvement in regional forums such as ASEAN is also expanding. Webinars hosted by FICCI, FBCCI, and VCCI explored cross-border food processing, tax policy, and labor development. Meanwhile, a joint survey by Google and ICE revealed significant challenges for Southeast Asian MSMEs in digital exports, including access to affordable internet and e-commerce capabilities.
Plans are underway to train 1,000 MSMEs across ASEAN nations, equipping them with skills for digital trade, e-exporting, and supply chain participation. Nepal’s small enterprises may benefit from future inclusion in such initiatives, enhancing their competitiveness on a regional stage.
Global Supply Chain Resilience: Lessons for Nepal
Amid ongoing geopolitical and post-pandemic disruptions, countries are shifting focus toward supply chain resilience. Strategies such as inventory buildup, production decentralization, and digitization are gaining traction globally. For Nepal, aligning with such models may help bolster domestic industries, attract supply-chain relocation, and reduce dependence on traditional trade corridors.
Conclusion: A Nation of Contrasts and Possibilities
Nepal today stands at a complex intersection—between structural vulnerabilities and regional cooperation, policy reform and environmental stress, local setbacks and international opportunities. The road ahead requires decisive action from the government, cooperation among private sector players, and thoughtful engagement with global partners.
As Nepal charts its path forward, developing its service trade, strengthening infrastructure, regulating imports wisely, and embracing digital and regional trade can serve as critical pillars for long-term economic transformation.
