Government sets 7 pc growth target, $3,000 per capita goal

KATHMANDU: The government has unveiled 'National Commitment' document that sets ambitious macroeconomic targets. These include an average annual growth rate of 7%, a per capita income target of $3,000 and a goal of graduating from Least Developed Country (LDC) status within five years.

In addition, presented as the strategic policy agenda for Prime Minister Balendra Shah’s administration, the framework is a 100-point roadmap drawn from the election manifestos of the country’s six nationally recognised political parties. It will be implemented over the next five years and aims to lift national output towards a $100 billion gross domestic product (GDP) within that period.

Moreover, the document prioritises structural economic transformation and makes the private sector the principal engine of employment, supply-chain development and revenue generation. It calls for market reforms to eliminate rent-seeking, dismantle cartels and prevent artificial shortages. Investors are offered the assurance of stable tax rates for a decade.

Additionally, digital governance and administrative reform are central to the roadmap. The government has pledged to digitise processes from industrial registration to licence renewal, creating a paperless environment to reduce bureaucratic friction and speed up business operations. The plan also seeks to formalise the informal economy and strengthen financial controls to secure Nepal’s removal from the Financial Action Task Force (FATF) grey list.

Furthermore, social policy measures are woven into the economic agenda. The 'National Commitment' targets a reduction in multidimensional poverty to 10% through a nationwide 'Self-Reliant Economy' campaign that emphasises mandatory labour and skills contributions to production. The document institutionalises anti-corruption measures and commits to inclusive policies to broaden access to services and opportunities.

The 100 actionable points convert political pledges into concrete tasks with timelines and accountability mechanisms. It is said that the points will guide the government’s legislative and administrative priorities over the five-year period. Implementation details, including financing plans and monitoring arrangements, are expected to be released as the government begins to operationalise the roadmap.