PM Balen rules out scrapping planning bodies, Pushes reform agenda for efficient governance

KATHMANDU: Prime Minister Balen Shah has clarified that key state institutions such as the National Planning Commission and the Policy Research Institute will not be abolished, emphasizing instead a reform-driven approach to strengthen governance and public service delivery in Nepal.

Addressing officials and staff from both institutions at the Office of the Prime Minister and Council of Ministers on Tuesday (Baisakh 8, 2083 BS / April 21, 2026 AD), Shah underlined that systematic planning and robust policy research are essential to improving government efficiency and achieving sustainable economic growth in Nepal.

“Reforming these institutions will significantly support effective governance,” Prime Minister Shah stated, stressing that evidence-based policymaking is critical for enhancing Nepal’s development trajectory and public service outcomes.

Focus on Expertise and Evidence-Based Policy

Highlighting the importance of intellectual capital, Shah said the government seeks deeper analytical insights from domain experts and researchers. “We need high-quality expertise that goes beyond political perspectives and delivers long-term, research-driven solutions,” he said, adding that the government is committed to integrating academic and policy research outputs into national decision-making processes.

He also directed both institutions to operate with accountability and deliver measurable outcomes without excuses. “Concrete planning and vigilant implementation are essential. The role of subject-matter experts in development is irreplaceable,” Shah noted.

No Room for Institutional Inefficiency

Rejecting claims of weak inter-ministerial coordination, the Prime Minister asserted that such issues are unacceptable within a unified government structure. He cautioned against using budget constraints or legal complexities as justifications for inaction.

“Research and analysis must drive results. Relying on outdated policies may sustain operations temporarily, but without reform, Nepal cannot achieve long-term prosperity,” Shah warned, signaling a shift toward results-oriented governance and institutional accountability.

Finance Minister Calls It a ‘Golden Opportunity’ for Reform

Finance Minister Swarnim Wagle described the current period as a “golden opportunity” to overhaul institutional frameworks in line with strong political commitment.

He instructed policymakers to transform expert knowledge into actionable government policies, programs, and budgetary frameworks. “Proposals must include clear objectives, adequate funding, defined responsibilities, and measurable outcomes,” Wagle emphasized.

The Finance Minister also outlined plans to strengthen existing institutional structures, eliminate obsolete provisions, and introduce new policy frameworks aligned with evolving national and global economic realities. He highlighted a strategy to launch innovative programs as pilot projects before scaling them nationally upon success.

Institutional Feedback Highlights Resource Gaps

During the interaction, officials from the National Planning Commission briefed the Prime Minister on ongoing projects, operational challenges, and budgetary constraints. Representatives from the Policy Research Institute stressed the growing importance of research outputs in shaping Nepal’s governance system, while also calling for increased human resources and institutional capacity.

Officials noted that the direct engagement with the Prime Minister has boosted morale and reinforced their commitment to delivering high-impact policy research and planning outcomes for Nepal’s economic development.