Economy in Party Manifestos: Big Promises, Thin Foundations

KATHMANDU: Major political parties have unveiled their election manifestos ahead of the House of Representatives polls scheduled for March 4, and the economy sits at the center of nearly all of them.

Every party is promising growth, prosperity, jobs, and investment-led expansion. The differences lie mostly in branding. The Rastriya Swatantra Party calls its document a “Commitment Paper,” the CPN-UML sticks with “Manifesto,” the Nepali Congress labels its plan a “Pledge Document,” and the Communist Party presents its own “Policy Commitments.”

Despite the different names, the ambitions look strikingly similar: rapid economic expansion, higher income levels, and large infrastructure pushes.

UML: A Rs10-Trillion Economy in Five Years

The CPN-UML has set one of the boldest targets — expanding Nepal’s economy to Rs10 trillion within five years. To get there, it says the country must sustain annual growth between 7 and 9 percent.

Nepal’s current economy is estimated at around Rs 6.1 trillion. UML believes the jump will come from sharp gains in agricultural productivity, electricity generation, mineral extraction, industrial output, information technology, and infrastructure development.

The party doesn’t stop there. It says the economy could double again to Rs20 trillion in the following five years. UML also aims to raise per-capita income to $3,000 within five years, roughly double today’s level of about $1,500.

The manifesto promises to mobilize domestic resources and eliminate extreme poverty through what it calls “rapid and equitable growth.” UML estimates it could generate 400,000 jobs annually through overall economic expansion and another 100,000 through targeted employment programs, including in the IT sector — a total of half a million jobs each year.

On infrastructure, UML plans to develop corridor cities along the Mid-Hill Highway and the Koshi–Gandaki corridor, building clusters for industry, trade, education, health services, tourism, and IT. It also proposes transforming the Postal Highway into a hub for industrialization, commercial agriculture, and business expansion.

The party pledges to double exports within three years and triple them within five, aiming to cover at least one-quarter of imports through export earnings.

Major irrigation projects such as Babai, Bheri-Babai, Sunkoshi-Marin, Rani Jamara, and Sikta are listed as priorities. UML also promises to upgrade the East-West Highway into an expressway standard and convert the Mid-Hill Highway into a dedicated double-lane road.

Railway ambitions are equally sweeping. UML aims to complete the East-West electric railway within ten years, push ahead with the Birgunj–Kathmandu and Kerung–Kathmandu rail lines, and finish the Nepal-India cross-border railway within five years. It also promises to double both electricity production and per-capita consumption.

RSP: A $100-Billion Economy

The Rastriya Swatantra Party (RSP) has set its sights on expanding Nepal’s economy to $100 billion within the next five to seven years — another ambitious projection.

It argues that a steady 7 percent annual growth rate would be enough to achieve this and lift Nepal into the category of middle-income countries. The party also says per-capita income could exceed $3,000 within that timeframe.

RSP promises not to apply tax laws retroactively and says it will review income tax thresholds, though it has not specified new rates.

Within 100 days of forming a government, the party says it would ensure small cooperative depositors receive their savings back. In the IT sector, it plans to increase exports from the current $1.5 billion to $30 billion within a decade, supported by a new IT Promotion Board. It also claims the tech sector alone could create 500,000 jobs.

On energy, RSP aims to push installed power capacity to 30,000 MW within ten years and raise per-capita electricity consumption to 1,500 kilowatt-hours by 2035. Achieving this, it says, would require revising laws related to land, forests, and environmental regulations.

The party also wants to double tourist spending within five years and focus tourism development in Karnali and Sudurpaschim.

RSP proposes reducing government ownership in Nepal Airlines to 51 percent and privatizing the remainder. It promises to eliminate syndicates and cartel practices in long-distance bus services.

To tackle urban pollution, the party suggests building bypass roads around major cities. It also proposes a 50-year railway master plan, with the Mechi-Mahakali electric railway as the backbone for both passenger and cargo transport.

The plan includes linking Nepal’s rail network to India and China, extending branch lines to major cities such as Pokhara, Kathmandu, Dang, Surkhet, and key Tarai hubs. It also mentions future electric bus systems, trams, and light rail in major cities, and speeding up compensation and staffing issues to bring under-construction railways into operation sooner.

Nepali Congress: Rs11.5-Trillion Economy, $2,500 Income

The Nepali Congress has unveiled its economic policy under the slogan: “Liberal policy, domestic employment, prosperous Nepal — Congress responsibility.”

It proposes declaring the next five years an “economic recovery decade in half,” focused on second-generation reforms. The party aims to grow the economy to Rs115 trillion and lift per-capita income to $2,500.

To support this, Congress says it would mobilize investment worth Rs137 billion, with 80 percent expected from the private sector. It also pledges to keep inflation around 5 percent while pursuing what it describes as a liberal, production-oriented, and equitable economic model.

Congress says it wants cross-party agreement on a minimum shared economic agenda so policies remain stable even when governments change.

It promises a hassle-free business environment and legal guarantees that tax rates and conditions will remain stable for at least 10–15 years through a “stability clause.” It also says it would end the practice of arresting entrepreneurs before investigating cases.

The party proposes exempting personal income up to Rs1 million from tax to support low- and middle-income earners. It also promises loans ranging from Rs500,000 to Rs5 million for innovative youth and women entrepreneurs.

Congress aims to improve Nepal’s export ratio from 10:90 to 20:80 and says budgets will be based on evidence, real data, and necessity rather than political guesswork. It also pledges strict enforcement of the budget calendar.

The party proposes cutting VAT to 10 percent and adopting scientific cost-benefit analysis and strategic priorities when selecting public investment projects.

Congress says it would create 1.5 million decent and productive jobs within five years. It also plans to expand the Social Security Fund while eliminating duplication in programs.

On infrastructure, Congress promises to upgrade the Kathmandu–Hetauda road to ensure year-round operation within a year, complete expansion of the East-West Highway, finish the fast-track road project, and accelerate reconstruction of the BP Highway.

It also plans to complete the Madan Bhandari Highway and north-south corridors, introduce a smart public transport system within a year, resolve land compensation issues for cross-border and East-West railways, and conduct feasibility studies for the Kathmandu–Pokhara–Lumbini electric railway.

Nepali Communist Party: Double-Digit Growth Ambition

The Communist Party’s manifesto is equally ambitious, promising to achieve double-digit economic growth within five years.

It aims to reduce multidimensional poverty from 20.15 percent to 10 percent and take advantage of Nepal’s demographic dividend by adding 150,000 new jobs annually, ensuring total yearly job creation reaches 500,000.

The party says it will restructure the economy, cut production costs through policy reforms, and make domestic products more competitive.

In agriculture, it proposes declaring the next decade the “Agricultural Investment Decade.” It promises farmer ID cards within a year, eliminating hunger within two years, and expanding irrigation to 80 percent of arable land within five years.

The party lists major infrastructure goals including completion of the East-West Highway, Postal Highway, Mid-Hill Highway, fast track, Kathmandu-Hetauda tunnel road, and north-south corridors. It also proposes a new East-West Himalayan Highway.

Railway projects such as Kerung–Kathmandu, Kathmandu–Pokhara, and Kathmandu–Lumbini would be pushed forward, along with the East-West railway and metro and monorail systems in Kathmandu.

The party also promises to complete Nijgadh International Airport within five years and raise electricity production capacity to 15,000 MW in the same period.