Recently, President Ramchandra Paudel presented the policies and programs of the government for the fiscal year 2025-26 in a joint meeting of the House of Representatives and the National Assembly. The presidential address has emphasized the government’s commitment in various areas, including strengthening the democratic republic, economic development and good governance. The policy document, which carries a lot of commitments from the past, comes at a time when the country is in an economic crisis, preceding the budget for the fiscal 2025-26. 

Statute amendment 

The policy document envisages amending the Constitution by strengthening its strengths and correcting its shortcomings through consensus, in the line of a promise that the two largest parties in the Parliament had made while forming the current ruling coalition nine months ago. The idea is to strengthen the democratic republic. 

Amid a slump, the document aims to fulfill the national aspiration of ‘Prosperous Nepal, Happy Nepalis’ by ushering in political stability, good governance, development and social justice for a socialist-oriented economic and social transformation based on democratic values. 

Government-run programs, per the document, will focus on entrepreneurship development, production, productivity and job creation. 

The pledge to abolish/merge redundant structures is very much there as part of a commitment to stop wasteful spending. 

A carbon-free Nepal

On the energy front, the document has something big as it aims to prioritize energy development, especially renewable energy (solar, wind and hydrogen) and also develop multipurpose and reservoir-based hydropower projects. 

What’s more, the document pledges to make Nepal a net-zero carbon emission country by 2045. 

 

Good governance

Good governance is on priority, at least on paper, in line with a constant commitment to control corruption and end impunity. 

The document has a vision of linking most of the government services with “Nagarik App” as part of its effort to ensure good governance through digital platforms. It envisages a “digital ecosystem” for the development and expansion of the latest information technology, something which is expected to contribute to good governance. 

First and foremost, the app itself needs to undergo updates with the mention of the contact person, the person’s email address, etc for it to be able to be a tool for good governance. 

 

A healthy Nepal

Under the Healthy Nepal Campaign, the document aims to develop all aspects of the public health delivery system by adopting both preventive and curative methods. It has a vision for collaboration between the federal, provincial and local levels to provide quality basic health services to all citizens. It aims to develop a health system on the basis of population, geography and disease burden to realize this vision. 

Economic shocks 

For a large part, the policy document focuses on economic development and transformation, which is natural, given that the document forms the basis for the budget.
 
Nepal’s exports to developed countries will be affected after its graduation from the club of least developed countries to the grouping of developing countries. An evolving international trade system that is under pressure from the United States’s trade policies and China’s retaliatory policies poses challenges for Nepal. Although the external sector is doing good, the internal economy is not improving as expected. The government has to borrow money to meet its expenses as it has failed to meet revenue targets, which is not an enviable situation. The government should closely monitor evolving global trade scenarios and make suitable changes in its policies to minimize the shocks on the national economy.  

National security and foreign policy 

The document lays emphasis (once again) on effectively mobilizing all security agencies, including the Nepali Army, for national sovereignty, geographical integrity, national independence, national unity and national interest. It also outlines a vision for pursuing an independent foreign policy on the basis of the Charter of the United Nations by upholding the principles of non-alignment, Panchasheel, international laws and principles of world peace. The document aims to deepen relations with neighboring countries on the basis of mutual benefit and respect. What’s more, it has a vision to use economic diplomacy as an important tool for promoting aid, investment, labor market, tourism and trade.

Lastly, let’s hope that the government will be able to implement the policy document and usher in peace and stability in the country.