The then Finance Minister Barshaman Pun had announced the launch of the Gandaki Economic Triangle Project, aimed at connecting Bharatpur, Pokhara, and Butwal, in the budget for the current fiscal year 2024/25.
Seven months after the announcement, the project—designed to establish these three cities as key hubs for an integrated model development campaign—remains unimplemented. It was intended to create an industrial ecosystem in collaboration with the private sector to promote industrial revival and quality employment. However, no progress has been made so far.
A budget of Rs 2 billion was allocated for its development as a model public-private partnership (PPP) project. Despite being included in the budget, neither a procedural framework has been formulated nor any concrete steps taken toward its execution.
Senior officials at the Ministry of Finance claim that the then Finance Minister Pun introduced the project without prior feasibility studies or a Detailed Project Report (DPR). The proposal was approved by then-Finance Secretary Madhu Kumar Marasini, who is considered close to the CPN (Maoist Center). Officials argue that this deviation from standard procedures has contributed to the delay.
A senior official from the Budget Division of the Ministry of Finance stated that the project stalled because the finance minister and secretary at the time disregarded the tradition of including only projects with feasibility studies in the budget. The official further noted that even the current government has shown no interest in implementing the project. According to him, Finance Minister Bishnu Poudel perceives the initiative as a politically-driven program introduced without adequate resources, making its future even more uncertain.
Amid federal inaction, the Lumbini and Gandaki provincial governments have been pushing for the project's implementation. Frustrated by the lack of progress, both provinces have decided to move forward with the initiative, arguing that it is critical for regional development. In a recent joint meeting at the historic Ranimahal Palace in Palpa, officials from the two provincial governments agreed to exert pressure for the project’s execution. A source from the Chief Minister’s Secretariat, quoting Lumbini Provincial Chief Minister Chet Narayan Acharya, confirmed that both provinces are committed to seeing the project implemented.
The project envisions the completion of the under-construction Narayangadh-Butwal and Muglin-Pokhara road sections by the next fiscal year. Additionally, the Butwal-Pokhara road is set to be upgraded into a dedicated two-lane highway, while a comprehensive transport network will be developed across all three corridors to facilitate industrial growth. Each corridor has been designated for specific industries: Narayangadh-Butwal will serve as a hub for construction materials and heavy industries, Muglin-Pokhara will focus on agriculture and food processing industries, and Pokhara-Butwal will be dedicated to electrical appliances, footwear, textiles, carpets, household goods, and services.
Beyond industrial development, the project aims to enhance regional infrastructure in collaboration with the private sector. Bharatpur is planned to become a center for ecotourism services, rafting, and specialized health services, while Pokhara will focus on adventure tourism, ecotourism, and research-oriented higher education. Meanwhile, Butwal-Bhairahawa is expected to specialize in religious tourism, data centers, and IT-related institutions.
The Pushpa Kamal Dahal-led government had introduced several projects in the budget without conducting DPRs or feasibility studies, nor were they included in the official project bank. With the change in administration and a lack of interest from the current government, many of these projects—including the Gandaki Economic Triangle Project—remain in limbo, with little prospect of moving forward.
