Nepal unveils ambitious governance reform agenda

Nepal's government has unveiled an ambitious national commitment paper detailing a sweeping governance reform agenda. The 14-page document, endorsed by the Cabinet, outlines wide-ranging changes across economic restructuring, civil service, digital governance, infrastructure, and foreign policy.

The reform paper draws on constitutional principles, democratic values, and recent public calls for good governance and corruption control, including those from Gen Z protests. It aims to harness Nepal's demographic dividend for private sector-led growth, targeting a middle-income status graduation. The government pledges to curb corruption and artificial shortages, aiming for an average annual economic growth of 7% over the next five years. Specific economic goals include raising per capita income to $3,000, expanding the economy to $100 billion, and reducing multidimensional poverty to 10%.

Digitalization is a key focus, with plans to create paperless systems for business registration and renewals. To reduce import dependence, the government will pursue new trade arrangements with India and promote self-reliance in agriculture. Initiatives include expanded irrigation, farmer credit cards, insurance, subsidies, and a contributory pension system for farmers. High-value cash crops will be prioritized in the hills and Himalayan regions.

In tourism, the government aims to double average visitor spending within five years by promoting high-value tourism and declaring 2027 as National Wellness Year. The aviation sector will see the Civil Aviation Authority of Nepal split into separate regulator and service provider entities to enhance safety. The energy sector targets 30,000 megawatts of electricity generation in the next decade, including major projects like Budhigandaki and Dudhkoshi. Plans also include expanding electricity trade with India and Bangladesh, promoting green hydrogen, and exploring rare earth elements. Investor-friendly mining policies through public-private partnerships are also promised.

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The commitment incorporates the manifestos and commitments of the six nationally recognised political parties.