High-level governance reform commission talks dismissal and merger of redundant public institutions

KATHMANDU: The second meeting of the High-Level Governance Reform Commission, chaired by Prime Minister KP Sharma Oli, has initiated concrete discussion on shutting down or merging multiple public institutions deemed unnecessary, while also transferring some to provincial or local levels to reduce redundancy and improve efficiency.

Held at the Office of the Prime Minister and Council of Ministers, the meeting instructed the commission’s implementation committee to conduct a detailed study and submit a proposal within 15 days based on recommendations from previous commissions and taskforces over the years.

Prime Minister Oli directed that the proposal must include clear alternatives to produce visible, beneficial results in line with the commission’s mandate — to simplify public service delivery and cut bureaucratic overlap.

The implementation committee is headed by Chief Secretary Ek Narayan Aryal. The commission itself was formed on 8 Baisakh through a Cabinet decision, aiming to make public service delivery simpler, accessible, economical and hassle-free. Its first meeting was held on Ashad 4 earlier this year.

Background and Previous Development

Over the past decade, several committees — such as the Administrative Reform Committees, the High-Level Administration Reforms Panels (previously led by figures including Dr. Kashi Raj Dahal and Trilochan Upreti) — have repeatedly recommended mass dissolution, merger, or handover of government boards, authorities, councils and funds which duplicate functions or exist without purpose. However, their reports have largely been ignored or not implemented.

The newly formed High-Level Governance Reform Commission under Oli’s leadership was created to finally execute those long-pending rationalization measures. Earlier discussions had identified more than 40 institutions — including councils and boards — that could be either scrapped or transferred to provincial or local governments under the federal system.

At today’s meeting, the commission reviewed those past suggestions and assigned the Implementation Committee to bring a time-bound action plan. The commission has now included newly added political members like Congress Vice President Purna Bahadur Khadka and UML Vice Chairman Ram Bahadur Thapa, as well as three expert members — marking this as its first extended sitting.

Mandate and Next Steps

The commission has been tasked with:

Making service-delivery agencies more people-friendly by restructuring physical and human resources, work procedures, and technology

Speeding up decision-making by removing duplication and bureaucratic delay

Strengthening coordination across federal, provincial, and local governments

Reforming administrative structures, laws and processes to better fit Nepal’s federal system

Improving laws related to good governance, civil service morale, accountability and performance

It was also informed in the meeting that the proposal for revising the functional division between union, province and local levels — prepared by the “Jurisdiction Adjustment Recommendation Committee” — will be submitted to the National Coordination Council and then to the Cabinet.

The commission includes Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, Home Minister Ramesh Lekhak, Law Minister Ajay Kumar Chaurasiya, and Federal Affairs Minister Bhagwati Neupane as ex-officio members.

While the mandate promises sweeping administrative restructuring in line with federalism, previous commissions faced delays due to political reluctance and resistance from bureaucracies. The success of this commission will largely depend on whether the new implementation committee brings a strong, time-framed plan and whether the Cabinet is willing to execute it without political compromise.