Smart Telecom

Smart Telecom, once Nepal's third-largest telecom provider, has collapsed, resulting in a state loss exceeding 30 billion rupees. The government, led by then-Prime Minister KP Sharma Oli, controversially reinstated the company's revoked license in January 2020, despite significant unpaid dues, leading to this unprecedented financial crisis in the telecommunications sector.

The arrest and subsequent release of Jyoti Prakash Pandey, CEO of Nepal Investment Mega Bank (NIMB), by the Central Investigation Bureau (CIB) has ignited a debate regarding banks' collateral rights and Nepal's loan recovery laws. Banking professionals express concern that the CIB's actions may intimidate the financial sector, questioning investment security and legal protections for lenders.