In Progress Government Commitments 2026

"Online, Not Queue" — Digital Government Services

Nagarik App launched for digital IDs (citizenship, license, PAN, voter ID) but many institutions still refuse digital documents — banks, hospitals, offices demand paper copies. ADB approved $40M and World Bank $50M for Nepal Digital Transformation Project (Mar 2026). E-Governance Blueprint introduced Feb 2025. Interoperability established between citizenship and national ID systems. Traffic police and tax department using QR verification. UN e-Gov ranking: 125th (up from 132nd in 2020). Major gap between digital ambition and institutional adoption.

Digital Parks in All 7 Provinces

Only 1 IT Park exists: Banepa, Kavrepalanchowk (234 ropani, built 2000-2005, Rs 270M invested). Struggled for years — IBM left after 9 months, Javra Software left citing poor connectivity. Recently revived with Kathmandu University setting up Smart City Research Center, Cloud Himalaya and Soft Tech Foundation operating. Nepal's first supercomputer installed there. Capacity for 144 engineers. No new provincial digital parks established in remaining 6 provinces. Vision: 15,000 tech jobs when fully operational.

Declare IT as National Strategic Industry

FY 2025/26 budget declared IT as "special industry" with 75% tax exemption on IT export income. 5% final tax for individuals selling IT services abroad. FY 2024/25 declared "IT Decade" targeting Rs 3T IT exports and 1.5M jobs in 10 years. National AI Policy 2082 approved Aug 2025. National AI Centre established under Ministry of Communication. However, no formal "strategic industry" legal declaration yet. Industry leaders call for dedicated IT Promotion Board (not yet formed). Implementation remains weak per NAS-IT president.

Declare IT National Strategic Industry

IT declared "special industry" in FY 2025/26 budget with 75% tax exemption on IT export income and 5% final tax for individual IT service exporters. "IT Decade" declared in FY 2024/25 (Rs 3T export target, 1.5M jobs). National AI Policy approved Aug 2025. National AI Centre established. However, formal "strategic industry" legal status not yet enacted. No dedicated funding mechanism or protection framework equivalent to agriculture/defense.

Digital Parks in All 7 Provinces

Only Banepa IT Park (Bagmati Province) exists — 1 of 7 provinces covered. Built 2000-2005 on 234 ropani. Had years of inactivity. Now revived with KU Smart City Research Center, Cloud Himalaya, Soft Tech Foundation, and Nepal's first supercomputer. 50% tax subsidy for park tenants. Capacity: 144 engineers simultaneously. No IT/digital parks established or under construction in Koshi, Madhesh, Gandaki, Lumbini, Karnali, or Sudurpashchim provinces.

Remote Work Legal Recognition

No Labor Act amendment for remote work yet. However, Digital Nomad Visa policy (announced May 2025) implicitly recognizes remote work for foreigners — includes 5% income tax for stays over 186 days, bank account opening rights, vehicle ownership. The Economic Reform Implementing Work Plan 2025 includes this. Multiple ministries (Tourism, IT, Finance, Home) coordinating. But formal Labor Act amendment for Nepali citizens doing remote work/freelancing/gig economy is not drafted.

Digital Nomad Visas

STRONG PROGRESS. Government announced 5-year multiple-entry digital nomad visa in May 2025 under Economic Reform Work Plan. Requirements: $1,500/month income or $20,000 savings, $100,000 health insurance. Benefits: bank accounts (withdraw all if not renewed), vehicle purchase/registration, foreign license valid. 5% income tax if staying 186+ days/year. Expected to fully open for applications in 2026. Multiple ministries coordinating. Nepal Tourism Board and NTA leading infrastructure development. Law not yet published but framework detailed.

Cashless Society Platform

Strong organic growth. Mobile commerce = 70% of online transactions. Smartphone penetration >60%. E-commerce market forecast >$600M by 2026. Key platforms: eSewa (~70% market share, largest merchant network), Khalti+IME Pay merged Jul 2025 (4M+ users combined, now #2). Fonepay leading QR-based interbank payments. 13% VAT on digital transactions introduced 2024 (10% refund on hospitality). 12+ digital wallets operating. However: rural/mountain gaps remain, no interoperability between wallets, cash still dominant overall. NRB exploring CBDC Digital Rupee pilot for 2026.

True One-Stop Service Center for Investors

Establish genuine single-window service center for all investor approvals and registrations

Digital Business Registration

Enable complete online business registration and licensing within 24 hours

Cooperatives Under NRB Supervision

Bring all savings-and-credit cooperatives under Nepal Rastra Bank regulatory supervision

Criminalize Predatory Lending (Metre Interest)

Enact legislation criminalizing predatory lending practices (metre interest/usury)

NEPSE Reform — International Standards

Reform NEPSE with intraday trading, derivatives market, and international best practices

Digital Tourism Permits

Fully digitize trekking permits, national park entry, and tourism-related approvals

Limit Federal Ministries to 18

Reduce federal ministries to 18, eliminate duplication between federal, provincial, and local governments

Fast-Track Citizenship & Passport Processing

Eliminate passport and citizenship backlogs through digitization and process reform

Expert Ministers — Subject-Matter Specialists

Appoint subject-matter experts as ministers rather than political appointees

Time-Bound Public Services

Guarantee time-bound delivery for all public services through digital service delivery systems

National Identity Card Integration

Integrate all identity documents into a single national ID card system

Public Procurement Transparency Portal

Open portal for all government procurement data, contracts, and spending

Autonomous Civil Service Transfer Board

Create autonomous board for civil service transfers to eliminate political interference in postings

Complete Transitional Justice Tasks

Complete all remaining transitional justice tasks from the conflict era through truth and reconciliation

Gen-Z Movement Investigation (Bhadra 23-24)

Independent investigation of Bhadra 23-24 incidents during the Gen-Z protest movement

Generate 30,000 MW Electricity in 10 Years

Achieve 30,000 MW electricity generation and become energy exporter. Current installed capacity is ~3,422 MW (3,256 MW hydro, 107 MW solar, 53 MW thermal). 259 projects totaling 10,692 MW under construction. FY 2025/26 target: add 942 MW to reach 4,800 MW. Government vision: 28,500 MW by 2035 with 15,000 MW for export.

15,000 MW Installed Electricity Capacity

Current installed: ~3,422 MW (Mar 2025). Of 43,000 MW economically viable hydro potential, only 7.5% realized. 175 operational hydropower plants = 3,389 MW licensed. FY 2025/26 target: add 942 MW to reach 4,800 MW. 259 projects (10,692 MW) under construction. Key projects: Tanahu 140 MW (completion 2026), Upper Trishuli-1 216 MW (Dec 2026). 731 km national transmission lines planned. System peak demand: 2,901 MW. At end of FY 2024/25: 3,591 MW installed. 15,000 MW target requires 4.4x current capacity.

Energy Export Diplomacy (India, Bangladesh)

MAJOR PROGRESS. India: exporting avg 1,000 MW daily. India approved additional 200 MW purchase (Aug-Oct 2025), total export capacity 1,010.9 MW. Rs 15B earned FY 2025/26. India long-term goal: import 10,000 MW from Nepal. Power Grid Corp-NEA cross-border transmission agreements signed Apr 2025. Bangladesh: Tripartite PSA signed Oct 2024 (NEA-BPDB-NTPC). 40 MW exported Jun-Nov 2025 via Indian grid at $0.064/kWh. Expanding to 60 MW from Jun 2026 (7th JSC agreement). 5-year deal. Historic: first time Nepal exports power to third country.

Restructure Electricity Tariffs

MAJOR REFORM: Electricity Regulatory Commission issued Open Access Directive Jan 2026 — allows eligible entities (5MW+) to use transmission/distribution networks on non-discriminatory basis, enabling direct producer-to-consumer sales and competitive market. NEA considering 10-15% tariff hike (pending ERC approval). Industrial tariff dispute forced 25 large industries to shut (15,000 jobs at risk). NEA collecting Rs 5.95B premium tariff dues from 35 companies. Slab-based residential rates: Rs 9.50/unit for 15-100 units. Open Access is most important power law reform in Nepal history.

Free Education for Up to 3 Children

Free education through high school for up to 3 children per family

"Skill in Education" National Expansion

Expand the successful Kathmandu "Skill in Education" program to all districts nationally

Zero Dropout Rate — School Retention Program

Achieve zero dropout through smart classrooms, labs, libraries, and retention programs

Free Education for Up to 3 Children

Guarantee free quality education from primary to higher secondary for up to 3 children per family

80% Irrigation Coverage in 5 Years

Expand irrigation coverage from current levels to 80% of arable land within 5 years

Net-Zero Nepal

Commit to net-zero carbon emissions target and develop national climate action roadmap

Forest Fire Center (Drones/Satellite)

Establish national forest fire monitoring and response center with drone and satellite technology

Flood/Landslide Early Warning Systems

Deploy nationwide flood and landslide early warning systems in vulnerable river basins and hill areas

East-West Highway 4-Lane Expansion

1,028 km highway from Kakarbhitta to Kanchanpur. Multiple sections under work: Kamala-Kanchanpur (Siraha/Saptari) at 67% but behind deadline; Narayanghat-Butwal 6-lane upgrade at 42% by Chinese contractor; Kakarbhitta-Laukahi 120 km with ADB $300M loan tendered; Koshi Province upgrade to Asian Highway standards underway. No work started in Sudurpashchim Province. Electricity pole relocation, land acquisition delays across sections.

Operationalize Bhairahawa & Pokhara Airports

Both airports built but struggling with international operations. Bhairahawa: 729 total international flights since May 2022 opening. Peaked Jan-Mar 2025 (299 flights, 15,148 passengers) when TIA was under maintenance. Went 5 months without international flights (Apr-Aug 2025). Thai AirAsia resumed 2x/week. Capacity: 50 intl flights/day, 3M passengers/year — vastly underutilized. Pokhara: No regular international flights. Only 1 weekly Lhasa charter (Chinese-funded). 3 domestic airlines serve 10 domestic routes. Feb 2026 revival plan under discussion.

Pokhara & Bhairahawa Airports Full Operation

Both airports built but far from full operation. Bhairahawa: 729 total intl flights since May 2022 but highly irregular. 5-month suspension Apr-Aug 2025. Thai AirAsia resumed 2x/week. Capacity 50 intl flights/day but <2 actually operating. Migration services not decentralized — passengers must complete processes in Kathmandu. Feb 2026 revival plan announced. Pokhara: zero regular intl flights. Only 1 weekly Lhasa charter. NYT raised construction quality concerns Oct 2023. Air Astra (Bangladesh) planned 4x/week but not started. Gov discussing sustainable action plan.

Universal Health Insurance — 100% Coverage

100% insured quality healthcare for all citizens through universal health insurance

Centralized National Ambulance Service

Establish a centralized, nationwide ambulance service reachable through single hotline

Pandemic Management Infrastructure

Build pandemic preparedness infrastructure including labs, stockpiles, and response protocols

Social Security Expansion — Pension & Insurance

Expand social security with pension fund for athletes, subsidized first-home loans, elder care

Sovereign Diaspora Fund

Create sovereign diaspora investment fund channeling remittances into national development projects

"Once Nepali, Always Nepali" Policy

Adopt policy recognizing Nepali origin for those who acquired foreign citizenship — rights and privileges

10 New National Pride Projects (5 Years)

NPC planning to add 10 more projects despite inability to complete existing ones. List grew from 17 to 27 since 2012. Proposed new additions include: PM Agriculture Modernisation Project, Madan Bhandari Technical University, Sunkoshi Marin Diversion Multi-purpose Project, Dodhara Chandani Bridge, 410 MW Nalsing Gad Storage Project, 756 MW Tamor Storage Hydroelectric Project, and Madan Bhandari Highway. Criticized for politically motivated additions diluting focus. Only 19 of 27 projects received budget allocation in current FY.