Minister for Industry, Commerce, and Supplies Damodar Bhandari has said that the government is prioritizing the implementation of the recommendations made by the High-Level Commission on Economic Reforms.
Speaking at the inaugural session of the ninth edition of the NewBiz Conclave and Business Excellence Awards 2025 on Thursday, Minister Bhandari stated that the government has already endorsed an action plan through the Cabinet to execute the commission’s recommendations. He added that work is underway at various ministries to this effect.
According to the minister, the budget for the upcoming fiscal year has been formulated based on the commission's suggestions, with the government focusing on structural, governance, and legal reforms.
Bhandari noted that while the industrial sector previously contributed 15 percent to the Gross Domestic Product (GDP), its share has now shrunk to 5 percent. He said the government is committed to reversing this trend. Citing the recent discovery of a gas reserve in Dailekh, he emphasized the government's focus on boosting domestic production to reduce imports.
He also highlighted the challenges posed by a distribution-centric state mechanism, which has made it difficult for the government to fulfill its responsibilities effectively.
Minister Bhandari said that since its inception in 2013, the NewBiz Conclave and Business Excellence Awards has evolved into a vital platform for dialogue among Nepal’s business stakeholders. He noted that the event has played a key role in energizing the economy and capital markets, even during crises such as the 2015 earthquake and the COVID-19 pandemic.
Bhandari added that such awards and recognitions not only provide motivation to entrepreneurs but also inspire them to strive for excellence. He said the awards send a message that there are ample opportunities in Nepal, encouraging youth to pursue careers within the country rather than migrating abroad.
Also speaking at the event, National Planning Commission Vice-Chairperson Dr. Shivaraj Adhikari stated that the government is working to improve the economic sector, which is also reflected in the upcoming fiscal year's budget. He acknowledged that certain policy and legal provisions have made implementation difficult but assured that gradual reforms are underway.
Dr. Adhikari admitted that although the commission had recommended excluding projects with a budget below Rs 30 million in the new fiscal plan, the directive was not fully implemented. He added that steps are being taken to ensure compliance in the future.
He also mentioned changes in the project evaluation system and in the distribution of federal grants to provinces and local levels. Unlike in the past, when all municipalities received equal federal grants, this year’s budget has introduced a system that allocates funds based on the capacities of individual provinces and local governments.
