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The private sector accounts for more than 80 percent of the national economy, according to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).  According to the apex body of the Nepali private sector, the number of private sector establishments surged from 28,600 in 1983 to 923,356 in 2018.

This growth accelerated after Nepal adopted liberal economic policies and embraced privatization in the early 1990s. The 1990 constitution, one of South Asia’s most progressive charters at that time, created an enabling environment for private sector investment, including in the media industry. In the years that followed, the private sector boomed which strengthened the economic health of private media houses. From the late 1990s through 2015, many media houses thrived financially, fueled largely by advertising from both the private sector and government. However, some also collapsed due to economic instability.

During the Maoist insurgency and the transition to the 2015 constitution, donor funding became another key source of income for Nepali media. Many outlets received substantial support to produce content aligned with the interests and agendas of international donors. In recent years, however, such funding has come under criticism, with concerns that it influenced politics and public policy in problematic ways. These funds are now in decline, leading to the shutdown of many legacy media outlets, particularly private and community radio stations that had played a critical role in informing and empowering rural communities. 

Following the promulgation of the new Constitution in 2015, and even before that, many donor organizations began shifting their focus to other regions, particularly in Africa and other conflicted-hit areas. In response, the Biden administration allocated support for independent media, including Nepal. But with the return of Donald Trump to the US presidency and the subsequent dismantling of USAID programs, media outlets that depended on American funding are now facing a deepening crisis. Across Asia and Africa, dozens of USAID-funded media organizations are on the brink of collapse. In Nepal too, media revenues from advertising are falling and international support is drying up.

Given this context, the time has come for Nepal’s private sector to step in, not as an act of charity, but as a commitment to safeguarding democracy. The private sector bears a huge responsibility that goes beyond profit-making. While some business houses with political connections may continue to benefit in the short term, a truly strong and sustainable private sector can only flourish in a democratic environment.

Around the world, there are examples of the private sector and middle class investing in the independent media to counter partisan journalism and to support civil society movements.

In their recent opinion piece, prominent scholars Semuhi Sinanoglu, Lucan Way and Steven Levitsky argue that a healthy private sector and a strong middle class form the backbone of a robust independent media. They have cited the example of Malaysia’s popular newspaper Malaysiakini, which, supported by the private sector and a growing urban middle class, broke the political monopoly over the media landscape.  They also highlighted several other cases where the private sector has stepped in to support independent journalism, ultimately contributing to the strengthening of democracy.

According to a 2023 study by Center for International Media Assistance, case studies in Czechia, Romania and Serbia show that the private sector can and does play a meaningful role in protecting information integrity.  While most of these efforts are modest in scale, they demonstrate the potential for private sector engagement in addressing information disorder and the wider challenges facing independent media in the region, the study states.  

In India, too, the private sector has backed some independent media platforms practicing free and fair journalism. For instance, individual investors have supported ‘The Print’, an online portal led by veteran journalist Shekhar Gupta. The portal has publicly disclosed the names of its backers.

In Nepal, however, beyond advertisement, there have been few initiatives where the private sector has provided direct funding to independent media houses, enabling them to report without business or political interference. One exception, though still debated, is Ukaalo.Com, which focuses on investigative reporting. Since its launch, questions have been raised about its funding model and sources. While the outlet positions itself as a not-for-profit entity and maintains no affiliation with political or corporate groups, there is speculation that Buddha Air provided seed funding, along with other private sector individuals. However, the media house has not made its funding details public, limiting open discussion on the issue. 

There are no major initiatives in Nepal where the private sector is supporting independent journalism for the sake of strengthening democratic discourse. The issue is not about private media houses funding outlets to serve their own business interests. Rather, it is about the private sector contributing to media that can produce genuinely independent content, countering politically and commercially influenced narratives, and tackling misinformation and disinformation.

This is undoubtedly a difficult period for Nepal’s private sector. But some business houses have seen remarkable growth and are in a position to provide seed funding for new independent media ventures. The middle-class could also step in to support such initiatives.

Now, more than ever, the private sector is becoming the victims of misinformation and disinformation. In private conversations, top business leaders have expressed concern that they are being targeted by false or misleading narratives, often amplified by certain media outlets. The most effective way to counter this is through investment in independent media for fact-checking initiatives. 

Major media organizations throughout the world have begun creating dedicated departments to counter misinformation and disinformation. In Nepal, however, effective efforts on this front are lacking. The private sector should consider investing in this area, as information integrity is vital for the business to grow.

However, the private sector is hesitant to openly support independent journalism. Many fear backlash from political parties or the government. Even those few business leaders, who have recognized the importance of independent media, choose to remain silent out of fear that any critical reporting on those in power could result in retaliation under various pretexts.

Compounding the issue is the lack of trust and communication between independent media outlets and business houses. Many business leaders feel that their issues are not adequately represented in the mainstream media. One top businessman recently told me that the media only reached out for collaboration after a crisis had already hit. This means, there is a clear need for more dialogue and consultations between independent media houses and the private sector. 

At the same time, it is important to acknowledge that the private sector has not turned its back on independent media entirely. Despite the challenges, some businesses are still providing financial support. They deserve credit for recognizing the role of independent journalism in upholding democracy.

The private sector must fully understand why independent media is essential to democratic governance and why a healthy democracy is, in turn, necessary for sustainable private sector growth. There has been little public discussion about the private sector’s role in strengthening civil society and supporting free and fair journalism. If the private sector wants unbiased, balanced and trustworthy information in the public domain, now is the time to invest in independent media that can operate freely and fearlessly without political or corporate interference.

A tsunami warning has been issued after three earthquakes, one with a magnitude of 7.4, were recorded off the Pacific coast of Russia, according to the United States Geological Survey (USGS), Aljazeera reported.

The epicentre of a series of earthquakes – the others measuring 6.7 and 5.0 – on Sunday was around 140km (87 miles) east of Petropavlovsk-Kamchatsky, capital of Russia’s Kamchatka region, which has a population of over 160,000 people.

According to the USGS, the three quakes occurred in the same area off the coast of Petropavlovsk-Kamchatsky within a span of 32 minutes, according to Aljazeera. 

Prime Minister KP Sharma Oli has urged the general public to refrain from non-essential travel and stay in safe areas.

His appeal comes amidst the Weather Forecasting Division’s prediction of heavy and widespread rainfall across the country while directing the security personnel to remain on alert.

He also urged the concerned authorities of the federal, provincial and local governments to remain active in minimizing the damage caused by potential disasters including floods, landslides and inundation.

Taking to social media, Prime Minister Oli said, “The Meteorological Forecasting Division has predicted heavy rain in various parts of the country this afternoon. He urged the people to stay informed through updates from the security agencies to take necessary precautions to avoid monsoon-induced disasters. I would like to request all to avoid unnecessary travel and direct the security agencies to remain on alert.”

Earlier, the National Disaster Risk Reduction and Management Authority had urged the people to be cautious, saying that there is a possibility of heavy rainfall in various parts of the country from July 19-21.  

The year 2025 has been a roller coaster ride for the development sector. Some development partners have discontinued; others have downsized and focused on certain geographies/sectors and others still have changed course completely. What is clear is aid is not what it used to be, the pot is shrinking and shrinking fast. Developing countries must find alternative sources of finance to fund development outcomes—and strategically leverage grants and concessional capital to maximise financing of development needs. The British Embassy Kathmandu has been designing and implementing financial instruments that unlock and mobilise public and private sector finance to support economic growth, private sector development and climate change mitigation.

Nepal is a unique country and has been on a unique development trajectory. Nepal received more than $10bn in remittance in the last fiscal year supporting a positive macro-economic outlook. Still, challenges and vulnerability remain. Dependence on remittance has, sometimes, taken attention away from private sector development and local job creation. Nepali businesses are not adequately integrated with global value chains and attract the lowest levels of foreign investment in South Asia. This limits access to foreign partnerships, technology and know-how. Nepal’s tourism sector, for example, remains stagnant, largely due to a lack of innovation and market access. Despite this and other obvious challenges in the Nepali economy, there are attractive business and investment opportunities across several sectors which remain untapped.

Access to finance is critical to ensuring inclusive growth in Nepal. A study conducted by the British Embassy calculated the funding gap from formal financial channels to small and medium enterprises (SMEs) at over $950m. More than 80 percent of the SMEs rely on informal financing sources and almost 60 percent rely on family and personal savings to fund their financing needs. Even on the formal financing side, SMEs in Nepal have very limited options for raising capital outside of collateralised bank loans. This puts many women, for example, at a disadvantage when so few of them own property or have access to savings. Limited access to finance also stifles growth, innovation and job creation. While the recent fiscal and monetary policies are more supportive of the private sector and SMEs in Nepal, SME development requires strong collaboration between all stakeholders—the government, development partners and the private sector.

Many developing economies like Nepal struggle to attract foreign investments or local capital into high risk/high rewards investment opportunities. Bilateral and multilateral development finance institutions (DFIs) are keen to invest in Nepal as is shown by the number of DFIs active in the country and those that are keeping a close watch for the right investment opportunities. Bridging the gap between interest and investment requires all stakeholders to join forces to mitigate challenges and find and develop opportunities. Designing innovative financial structures will be key in terms of crowding in large amounts of private sector capital.

Blended finance platforms invite the government, development partners, and development finance institutions (DFIs) to collaborate and unlock access to finance. Blended finance strategically uses development finance (grants) to mobilise local and international private capital (commercial capital) into strategic sectors. Further, a reform-oriented public sector that builds a supportive business environment through policy stability and effective partnerships is essential to achieving sustainable development outcomes. 

The British Embassy Kathmandu has been using a blended finance approach to support access to finance in Nepal. Funds such as Business Oxygen and Dolma Impact Fund achieved the dual goal of supporting development outcomes and enhancing returns to investors. International Finance Corporation (IFC), the investment arm of the World Bank Group, has used UK official development assistance (ODA) to de-risk investments and mobilise finance for SMEs in Nepal. The right financial structuring can help further reduce the gap between demand for capital and supply of capital in the growing SME ecosystem.

Building on previous experience, the British Embassy is establishing Nepal in Business—Catalytic Finance to unlock new sources of capital for SMEs, from the Private Equity and Venture Capital (PEVC) space and financial institutions. This financing facility will be managed by the Dutch Entrepreneurial Development Bank- FMO. Demonstration effects from blended finance facilities—investment leveraged, strengthened capacity of the financial sector, and shifting understanding of risks—can be catalytic in this ecosystem. The facility is also expected to create well above 10,000 new jobs.

The author is the Development Director at the UK’s Foreign, Commonwealth and Development Office (FCDO) in Nepal