Nepal’s 2025-26 Policy and Program disappoints, recycles old promises amid economic woes

KATHMANDU: Nepal’s policy and program for the fiscal year 2025/26, presented by President Ramchandra Paudel in parliament on Friday, has drawn criticism for failing to meet public expectations and recycling outdated agendas. Amid economic crises, unemployment, corruption, and youth migration, the government’s roadmap lacks bold solutions, reiterating unfulfilled promises and deepening public disillusionment.

Unveiled as a blueprint for national development, the policy and program was expected to address pressing challenges like economic stagnation and eroding trust in public institutions. Instead, it mirrors past documents, recycling programs on education, health, employment, and social security without fresh strategies. Initiatives like agricultural modernization, public spending cuts, business-friendly reforms, investment promotion, and tourism development are repeated verbatim, despite historically weak implementation due to legal, budgetary, or political shortcomings.

Nepal grapples with a 19% poverty rate, rising brain drain, and a struggling private sector, yet the program offers no transformative vision. “The government needed to address unemployment and corruption head-on, but this is just old wine in a new bottle,” said an economic analyst. Agricultural productivity and job creation are emphasized, but critical details on infrastructure, subsidies, or market access are absent. Public expenditure cuts are mentioned, yet no plans tackle political appointments or administrative waste, undermining credibility.

The phrase “business-friendly environment” has lost meaning for industrialists, who face declining confidence amid bureaucratic hurdles. With over 30,000 youths leaving Nepal monthly for foreign jobs, the program’s failure to propose innovative employment solutions is glaring. Repeated programs like strengthening the Nepali Army, expanding the National Service Corps, and integrating health insurance systems reflect a lack of originality, copied from prior years.

Globally, nations prioritize IT, cybersecurity, and innovation, but Nepal’s policy overlooks climate crises, digital threats, startups, and tech-driven economies. “The government seems unaware of 21st-century economic trends,” noted a tech entrepreneur. Instead, the program appears designed to balance coalition dynamics between CPN (UML) and Nepali Congress, prioritizing party quotas in appointments over public welfare.

Public trust in governance is at a low, with negative sentiments toward education, health, and security. Community schools deteriorate, private healthcare remains unaffordable, and corruption persists, yet the program offers no strategic anti-corruption or economic revival plans. “Citizens expected a roadmap for jobs, innovation, and accountability, but this feels like political theater,” said a civil society leader. The government’s focus on loyalist appointments further alienates it from public aspirations.

The policy’s repetitive nature—echoing unfulfilled promises of agricultural reform, infrastructure, and job creation—highlights a governance system stuck in inertia. Official data shows 19% of Nepalis remain below the poverty line, underscoring the gap between rhetoric and reality. Analysts warn that without decisive action, Nepal risks further economic and social decline.

As the 2025 budget approaches, the government faces mounting pressure to deliver substantive reforms. The policy and program’s failure to inspire confidence or chart a new course has left citizens skeptical, with many questioning whether the coalition can translate promises into progress or if Nepal will remain trapped in a cycle of stagnation.