Roadmap For Reform

The government has outlined its roadmap for economic reform, emphasising anti-corruption measures, good governance, and digitalisation, aiming to increase the economic growth rate to 7 per cent per year for the next decade. Addressing the federal parliament on Monday, President Ramchandra Paudel presented the policies and programmes for 2026/27, stating that Nepal will be upgraded to a respectable middle-income country with comprehensive legal and institutional reforms. With the concept of good governance as the foundation of a prospering state, the new programme is set to have a policy of zero tolerance towards corruption, national campaigns on providing services, and an action plan consisting of 100 reforms. It is encouraging that the programmes cover the economic fundamentals of information technology, hydroelectricity, tourism, quality agriculture, and green industry. To achieve this target, the government should introduce the budget as per the policies.

The government is also committed to pursuing the process of constitutional amendment through political dialogue, with an equal contribution from all strata of society. This call for inclusive constitutional amendment comes as an overdue olive branch in the politics of Nepal. After several years of constitutional amendments being stalled due to partisan deadlock, calling it a consensual “discussion paper" shows a degree of maturity – particularly when there is already a cross-party committee working on it. It comes at a very convenient time considering the overarching goals for good governance and anti-corruption within the overall agenda set for 2026/27. There is plenty of positivity too. Rural regeneration focuses on reclaiming unproductive land through land banks, use of agricultural technology, and returnee migrants farming. 

Information technology as a “national strategic industry” aims to build digital parks and incentivise AI while exporting cloud services to create a Himalayan tech hub. The government sees investments in infrastructure such as generating 30,000 MW hydropower within ten years, road projects, including the Kathmandu-Tarai Expressway, and preparation for Visit Nepal 2085, which involves 5,000 homestays booked online. Taxes are to be eased for entrepreneurs, a cashless society using digital platforms is targeted, and capital markets growth with bonds and diaspora funds.

Nevertheless, pragmatic approach is needed to realise the objectives. The visionary government’s agenda ought to be materialised through proper implementation. Transitional justice and constitution-making appear to be noble endeavours. There is great possibility of creating economies of scale through public-private partnerships and mergers. Nevertheless, such activities remain unrealised in the absence of strong anti-fraud measures. Contracts for project management are innovative means of transforming the management structure of state corporations. But mid-term changes undermine the entire process. Environmental taxes conform to international benchmarks. However, combining them all into one tax will definitely ruin poor farmers who struggle in survival mode. The Depositor Protection Fund of the Cooperative Association will definitely assist the defrauded individuals. Nevertheless, an effective regulatory body is badly needed to prevent fraud at its roots. This policy works through the human resources, including women entrepreneurs, youths at tech parks, and excluded farmers cultivating landbanks. Imagine rural programmers exporting cybersecurity services or agricultural clusters integrating farms into factories to reduce imports. This is the pledge for prosperity of our country. The government needs to follow this agenda, alongside being accountable.