KATHMANDU, April 11: The High-Level Economic Reforms Advisory Commission submitted its report to the government. Rameshwar Khanal, the commission's coordinator and former Finance Secretary, handed the report to Finance Minister Bishnu Paudel today.
Following the mandate from the Government of Nepal, the commission began its research in mid-October 2024. Although the commission submitted an interim report on January 8, outlining urgent matters, it has now submitted the full report.
Coordinator Khanal stated that the commission concluded that while overall demand-side factors remain weak, demand-side policies alone cannot address the immediate economic issues. The commission recommended necessary policy interventions to improve demand in the short term. It also suggested structural reforms on the supply side to create an investment-friendly environment, reduce production costs, and boost competitiveness for sustainable economic growth.
In formulating its reform proposals, the commission considered several assumptions. It recommended ending the current economic stagnation to revitalize the economy, creating economic opportunities, building a trust-based system, making sustainable and optimal use of available natural resources, creating a borderless economy, and ensuring macroeconomic stability to increase the economic growth rate.
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The commission urged the government to design policies and programs that reduce structural barriers, create economic opportunities, promote innovation, and ensure inclusive access for all.
It stressed the need for laws, procedures, and processes governing the economy to be rooted in trust. To support opportunity creation, foster a trust-based system, and ensure freedom in economic activities, the commission proposed repealing more than a dozen existing laws, amending over a dozen others, and enacting new legislation.
The commission also warned that sectoral economic policies will remain ineffective unless the government strengthens the institutional capacity and credibility of public agencies. It therefore recommended urgent reforms in this area.
The commission urged the government to reduce barriers in key sectors that drive economic growth, such as agriculture, forestry, land, mining, water resources, tourism, and information technology. It called on policymakers to implement targeted policies and programmatic interventions in areas like physical infrastructure, urban development, energy security, education and skills training, healthcare, and research and development to unlock opportunities in these sectors.
It pushed the government to act with strong political will and adopt innovative strategies to overcome Nepal's geopolitical constraints, integrate into the global economy, and promote the vision of a borderless economy.
In the area of public finance, the commission recommended implementing the existing suggestions put forward by the High-Level Public Expenditure Review Commission and the High-Level Tax Reform Committee, especially those related to public expenditure, revenue policies, and administrative reforms.
