Government’s 100-Day Economic Agenda Signals Reform Push, Execution Remains Key Test

Kathmandu — The newly formed government led by Balendra Shah has placed economic reform at the center of its 100-day action plan, outlining an ambitious roadmap aimed at revitalizing investment, strengthening industry, and modernizing the revenue system. The policy direction reflects a clear intent to rebuild private sector confidence while accelerating structural reforms that have long remained stalled.

At the core of the agenda lies a strong emphasis on improving the investment climate. The government has pledged to simplify and streamline business processes, including company registration, approvals, and operational clearances. Plans to empower the one-stop service center under the Department of Industry and introduce a single-window approval mechanism through the Investment Board indicate a shift toward reducing bureaucratic delays—one of the most persistent challenges faced by investors in Nepal. If effectively implemented, these reforms could significantly shorten project gestation periods and improve ease of doing business.

A notable highlight is the proposed “Startup Fast Track” system, which aims to enable business registration within two days. Coupled with the planned launch of a unified digital platform integrating business registration, tax enrollment, and banking services, the government appears to be moving toward a more digitally integrated economic governance model. This transition, if executed efficiently, could reduce compliance costs and encourage formalization of businesses, particularly among small and emerging enterprises.

The government has also targeted sectoral investment expansion, particularly in small and medium enterprises (SMEs), agriculture, and information technology. By reducing risk weights on lending to these sectors, policymakers aim to unlock greater credit flow into productive areas of the economy. This approach signals a strategic shift from consumption-driven growth toward production-oriented investment, which could enhance long-term economic resilience.

Equally significant is the government’s effort to restore private sector confidence through a dedicated “Private Sector Protection and Promotion Strategy.” The inclusion of relief measures—such as tax waivers, interest subsidies, and loan restructuring—for businesses affected by instability suggests a recognition of recent economic disruptions. Strengthening security arrangements for industrial and commercial activities further underscores the government’s attempt to create a stable operating environment.

On the infrastructure front, the proposed “National Project Pipeline” is expected to categorize and prioritize large-scale and strategic projects based on funding models, including public, private, and public-private partnerships. This structured approach could help address delays in project execution, provided coordination between agencies improves and financing mechanisms are clearly defined.

Revenue system reform forms another key pillar of the 100-day plan. The government’s push toward mandatory e-billing for large businesses, automation of tax administration, and stricter measures to control revenue leakage indicates a move toward greater transparency and efficiency. Additionally, the plan to bring long-dormant bank deposits into the state treasury reflects efforts to mobilize idle financial resources, although its implementation will require careful legal and institutional handling.

The consolidation of over 139 scattered public funds into a unified investment framework marks a significant step toward improving public resource utilization. By channeling these funds into high-return projects, the government aims to enhance fiscal efficiency and reduce duplication. Similarly, reforms in the customs system to facilitate trade and enforce maximum retail pricing standards suggest a broader attempt to improve market regulation.

Energy has been identified as a cornerstone of economic transformation. The government plans to accelerate power purchase agreements, develop an export-oriented energy strategy, and target high-value electricity markets. Given Nepal’s growing hydropower capacity, a well-executed export strategy could become a major source of foreign exchange earnings and economic growth.

Overall, the 100-day economic agenda presents a comprehensive and reform-oriented framework that addresses key structural bottlenecks. However, as with many past policy announcements, the real challenge lies in execution. Institutional capacity, inter-agency coordination, and political continuity will determine whether these initiatives translate into tangible economic outcomes. For now, the roadmap signals intent—but its success will depend on delivery.