Introduction

When Nepal emerged from 104 years of Rana autocracy in 1950, it was in a remarkably underdeveloped state. The country lacked even the most basic infrastructure—transportation, communication and water supply—as well as modern administrative and educational systems. At that time, Nepal had only one college and a few high schools, mostly concentrated in Kathmandu and a few urban centers. It was not until 1959 that the country established its first institution of higher education, Tribhuvan University. Before that, most aspiring students had to travel to India for higher studies. College graduates were rare, and the country had no doctoral degree holders.

It was in this context that Dr Yadav Prasad Pant earned his PhD in Economics from Banaras Hindu University (BHU) in 1954—reportedly becoming the first Nepali to earn a doctorate. This memoir outlines Dr Pant’s contributions in three key areas: (i) as a pioneering academic who helped build the foundations of economic thought in Nepal, (ii) as a key architect of the country’s macroeconomic and financial systems, and (iii) as a distinguished diplomat representing Nepal on the global stage.

An Academician

Dr Pant, widely known as Dr Y P Pant, earned his PhD in 1954. In recognition of his continued academic excellence, BHU later conferred upon him a Doctor of Letters (DLitt) in 1976 for his book Problems of Fiscal and Monetary Policy: A Case Study of Nepal, published in 1970 by Christopher Hurst and Company, London. British economist Sir Roy Harrod, after reading the book, remarked, "Nepal is lucky to have someone of the caliber of Dr Pant to explain its special circumstances”. This book was the first comprehensive study of Nepal’s monetary and fiscal challenges, highlighting the lack of central bank independence and chronic budget deficit driven by a narrow tax base (Upadhyaya, 2067 BS).

Following his doctorate, Dr Pant began his academic career as a professor of economics at Tri-Chandra College, where he primarily taught development economics. He remained in academia until 1957, when he was appointed Chief Economic Advisor to His Majesty’s Government and became a member of the National Planning Board.

Educated in both Nepal and India—countries then far behind global development standards, Dr Pant was deeply motivated to understand the root causes of underdevelopment. His scholarly output included several landmark works: Planning for Prosperity in Nepal (1957), Nepal’s Economic Development on International Basis (1957), Economic Development of Nepal (1965), Banking and Development (1971) and Problems of Development of Smaller Countries (1974), among others. In total, he authored or co-authored over 20 scholarly works covering industrial economics, fiscal and monetary policy, international trade and development economics. These works became foundational reading in universities across Nepal and India, and also filled a critical gap in the region’s economic literature.

Dr Pant also published numerous articles in prestigious journals. His influential 1964 paper, “Nepal’s Trade Policy”, in Asian Survey (University of California, Berkeley), examined the complex trade and transit issues facing landlocked Nepal, particularly with India, and the restricted access to the north due to the Himalayas. He also analyzed the role of domestic macroeconomic policies in shaping trade and development outcomes. Another key paper, published in Economic and Political Weekly in 1966, offered a detailed analysis of Nepal’s 3rd Five-Year Plan, proposing strategies to double national income through increased agricultural growth, institutional land reforms, development of basic infrastructure and industrial growth. It also discussed the Panchayat system as a potential vehicle for transitioning from a feudal to a modern economic structure.

His works reflect strong influences of Keynesian economics, likely shaped during his graduate studies and admiration for John K. Galbraith whose ideas are evident in his writings.

The Economic Architect

After his short teaching career, Dr Pant was appointed as the Chief Economic Advisor to then His Majesty’s Government in 1956. In 1961, he became Secretary of Finance in the Ministry of Finance and Economic Affairs. He held the position for six years. During this time, he played a transformative role in modernizing Nepal’s primitive fiscal system. He introduced key budgetary reforms and helped lay the foundation for Nepal’s modern planning and budgeting framework. Notably, he was instrumental in operationalizing the National Planning Commission, which remains the government’s principal planning body.

From 1968 to 1973, Dr Pant served as Governor of Nepal Rastra Bank (NRB). Under his leadership, NRB evolved from a basic currency-issuing authority into a fully functional and professional central bank. He expanded banking services beyond urban areas and laid the groundwork for a more inclusive national financial system. His tenure marked the implementation of coherent monetary and international financial policies. So effective was his leadership that Pierre Paul Schweitzer, then Managing Director of the International Monetary Fund (IMC), once described NRB as “one of the best central banks in the world”.

Dr Pant’s international economic career was equally distinguished. He served as an economist with the UN Economic Commission for Asia and the Pacific (1957–1959), becoming the first Nepali to work in the UN system. He represented Nepal as Alternate Governor of the International Bank for Reconstruction and Development from 1962 to 1967 and later as Governor from 1980 to 1983. He also served as Governor of the IMF between 1968 and 1972.

In national politics, Dr Pant held several key economic portfolios. As a nominated member of the National Assembly, he served as Minister of State for Finance (1980-1981) and later as Minister of Finance, Commerce and Supplies (1981-1983). In 1986, he was elected from Nawalparasi and appointed Minister for Water Resources (1986–1988). Throughout his political career, Dr Pant remained dedicated to strengthening Nepal’s economic foundations.

A Diplomat

From 1974 to 1979, Dr Pant served as Nepal’s Ambassador to Japan, with concurrent accreditation to Australia, the Philippines, New Zealand and South Korea. His tenure was marked by a significant strengthening of bilateral relations, particularly with Japan. In recognition of his diplomatic efforts, the Japanese government honored him with the prestigious “Order of the Rising Sun”.

Dr Pant was widely respected in both Nepal and abroad. Indian Finance Minister Pranab Mukherjee once remarked, “I was struck by his simplicity and the depth of his professional understanding. Interaction with him always left a deep impression on me” (Upadhyaya, 2010). Former Philippine Prime Minister Cesar E A Virata described Dr Pant as “a national resource and treasure of Nepal, and a man for all seasons” (Upadhyaya, 2010). Eric Gonsalves, former Indian Ambassador to Japan and the EU, recalled how valuable Dr Pant’s insights were during diplomatic engagements with the Japanese government (Upadhyaya, 2010). Bernard Krisher, former Tokyo Bureau Chief of Newsweek, remembered Dr Pant as “a distinguished scholar, diplomat, and political and economic statesman who contributed enormously to Nepal’s stature in the world” (Upadhyaya, 2010).

Final Thought

Dr Pant was not only a distinguished scholar but also a visionary nation-builder. His pioneering contributions to Nepal’s academic, economic and diplomatic spheres reflect a lifelong commitment to progress and public service. As Nepal advances on its path of development, his enduring legacy remains a source of inspiration and a benchmark for excellence.

References

Upadhyaya, K. P. (2010) “Dr Yadav Prasad Pant: A true hero” Republica Daily, November 18.

Upadhyaya, K. P. (Baishakh 2067 B.S.) “A great source of inspiration” in A Homage to Dr. Yadav Prasad Pant, Kathmandu Nepal.

(Upadhyaya is Professor of Economics at University of New Haven Connecticut, USA.)

(This opinion article was originally publihsed in  July 2025 issue  of New Business Age Magazine.)