A high-level economic reform commission formed by the government has recommended legal reforms, structural adjustments, and increased capital spending to address Nepal's economic challenges. Key proposals include drafting new laws for industrial sector challenges, limiting the operations of savings and credit cooperatives to a single local level, and expediting compensation for land acquired for development projects.
The commission has also advised the government to deploy a high-powered team to monitor projects with budgets exceeding Rs 100 million and emphasized the need for a public-private partnership to address non-banking assets and the real estate slump.
The commission, chaired by former finance secretary Rameshwar Khanal, submitted its preliminary report to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel on Wednesday. According to the ministry, the ‘interim’ report outlines short and long-term measures, including a three-year action plan to enhance economic progress and address structural barriers.
The report also highlights the importance of addressing government liabilities, reviewing grant-based programs for resource availability and impact, and facilitating Indian tourists entering Nepal via land routes.
The report has made recommendations to increase health insurance premiums, regulate commercial borrowing, and reconstruct infrastructure damaged by the Jajarkot earthquake.
Formed by a Cabinet decision on October 7, 2024, the commission includes members such as National Planning Commission member Dr Prakash Kumar Shrestha, economist Dr Bishwas Gauchan, and senior researcher Dr Kalpana Khanal.
According to the state-run national news agency RSS, Chairperson Khanal explained that the report analyzes the current economic situation, identifies challenges, and provides actionable solutions for both immediate and long-term implementation.
Analysts believe this comprehensive report will help guide the government in implementing reforms to bolster Nepal’s economic stability and growth but its implementation, like many other reports, remains doubtful.
