Swarnim Waglé calls for economic paradigm shift, Says Nepal must move beyond remittance-led growth

KATHMANDU: Finance Minister Swarnim Waglé has outlined an ambitious vision to transform Nepal’s economic model, arguing that the country can no longer rely on remittances, imports, and consumption-driven growth if it hopes to achieve sustainable prosperity.

Delivering his concluding remarks in Parliament before the passage of the Fiscal Year 2083/84 Appropriation Bill, Waglé said the budget represents a serious attempt to change Nepal’s economic trajectory by promoting production, investment, innovation, exports, and entrepreneurship.

“We cannot achieve sustainable prosperity by continuously sending our most energetic young people abroad,” the finance minister said, posing a series of fundamental questions about Nepal’s economic future.

From Remittance Dependence to Productive Growth

According to Waglé, Nepal now faces a historic choice: whether to continue operating an economy dependent on remittances, imports, and consumption or transition toward one driven by domestic production, investment, innovation, and exports.

He said the budget seeks to address structural weaknesses that have constrained economic development for decades.

“Over the last three decades, Nepal’s economy has largely been supported by remittances, import-based consumption, and rising asset values. While this model helped strengthen foreign exchange reserves and improve household living standards, it cannot serve as a sustainable foundation for long-term prosperity,” he said.

The minister emphasized that the country’s primary challenge is no longer simply increasing economic growth but changing the source of that growth.

New Economic Roadmap

The government’s proposed roadmap aims to shift Nepal:

• From a consumption-based economy to a production-based economy;
• From import dependency to a competitive economy;
• From remittance reliance to an economy driven by entrepreneurship, investment, innovation, and exports;
• From a welfare-oriented state to one that creates economic opportunities;
• From protectionist structures to competitive markets.

Waglé said the budget seeks to create an economic environment where the private sector can invest with confidence and where productive employment becomes the foundation of future prosperity.

Focus on Jobs, Agriculture and Industry

The finance minister stressed that poverty reduction must be driven by income growth rather than dependency on subsidies and transfers.

“The most sustainable policy against poverty is income growth,” he said.

He argued that productive employment, commercial agriculture, competitive industries, quality education, skills development, innovation, and investment are the key pillars for reducing poverty and strengthening the economy.

The budget also seeks to reposition farmers not merely as recipients of government subsidies but as competitive producers and entrepreneurs capable of driving economic growth.

Similarly, forests should no longer be viewed as passive natural assets but as resources that can support green industrialization, carbon markets, local enterprises, and employment creation, he said.

Building Investor Confidence

Waglé also called for reforms aimed at improving Nepal’s business climate, arguing that businesses should not be trapped in a maze of permits, approvals, and administrative procedures.

Instead, he advocated for a policy environment based on trust, predictability, and competition.

The minister acknowledged that reform is often difficult and may not produce immediate popularity but argued that long-term prosperity requires bold policy choices.

“We have not chosen the easy path of popularity; we have chosen the difficult path of prosperity,” he told lawmakers.

Can This Generation Change Nepal’s Economic Destiny?

A central theme of Waglé’s speech was a challenge directed at both policymakers and the public: whether the current generation has the confidence and determination to fundamentally change Nepal’s economic destiny.

He questioned whether Nepal is prepared to move beyond managing recurring economic problems and instead tackle the structural issues that have limited growth and job creation.

According to the minister, the budget’s core philosophy is built around four pillars: a capable state, a dynamic private sector, a productive workforce, and equal access to opportunities.

While acknowledging that no budget is perfect, Waglé said the government’s objective is not merely to manage the status quo but to establish the direction for long-term economic transformation.

“This budget is not the final destination,” he said. “It is the first decisive step toward a productive, competitive, innovative, employment-oriented, and self-confident Nepal.”