How Realistic Are Nepali Political Parties’ Promises to Build a Rs 100 Trillion Economy in Five Years?

Major political parties have released highly ambitious election manifestos pledging to dramatically transform Nepal’s economy within the next five years. With general elections approaching, parties on Thursday unveiled plans to expand the size of the economy to around Rs 100 trillion, more than double per capita income, and achieve double-digit economic growth.

However, analysts note that such targets may be difficult to achieve, given that Nepal’s economy has averaged just over four percent annual growth over the past four decades.

At present, Nepal’s per capita income stands at approximately 1,400 US dollars, while the total size of the economy is about Rs 61 trillion. Most parties now aim to at least double per capita income and expand the economy close to or beyond Rs 100 trillion within five years. Despite these bold commitments, their manifestos provide limited clarity on concrete policy measures, resource mobilization strategies, and structural reforms required to meet these goals. Questions remain about how capital expenditure—historically averaging only about 60 percent annually—will be increased, and how revenue generation and foreign direct investment will be boosted.

Nepali Congress: Rs 115 Trillion Economy and Tax Reforms

The Nepali Congress has pledged to expand the economy to Rs 115 trillion and raise per capita income to 2,500 US dollars within five years. The party describes youth as partners in entrepreneurship and the private sector as the engine of prosperity. It has committed to building a “liberal and production-oriented” economy that integrates disadvantaged citizens into the mainstream and transforms them into asset owners.

To achieve a roughly Rs 115 trillion economy, the party plans to mobilize investments totaling Rs 137.5 trillion, with 80 percent expected to come from the private sector. The government’s role would be limited to that of facilitator and impartial regulator. The party also promises to keep inflation within five percent and maintain a capital-output ratio of 4.5:1, focusing on a “pro-private, pro-growth, and pro-social justice” economic model.

The Congress has proposed a “stability clause” in tax laws to ensure that tax rates and conditions remain unchanged for at least 10–15 years. It also plans to introduce simplified digital systems for business registration and renewal, fast-track tribunals for resolving commercial disputes, and practical implementation of a “no work, no pay” policy to create a predictable labor environment.

Corporate income tax would be gradually reduced to 20 percent. Export-oriented goods and services would face a 10 percent tax rate, IT export businesses five percent, and production-based industries 15 percent. Small and scattered taxes would be consolidated into the value-added tax (VAT), with the single VAT rate gradually reduced to 10 percent.

CPN-UML: Rs 100 Trillion in Five Years, Rs 200 Trillion in Ten

The CPN-UML has set a target of building a Rs 100 trillion economy within five years and doubling it to Rs 200 trillion within a decade. It envisions achieving seven to nine percent economic growth through major gains in agricultural productivity, electricity generation, mineral and industrial output, information technology, and infrastructure development. The party also aims to increase per capita income to about 3,000 US dollars within five years.

The UML manifesto promises investment-friendly and production-supportive macroeconomic and sectoral policies. It pledges to channel financial sector capital into productive sectors and expand both domestic and foreign investment through capital market development. Public debt, according to the party, will only be taken for nationally prioritized projects and will not exceed safe national capacity limits.

The party identifies ten priority sectors: agriculture, energy, industry, tourism, physical infrastructure, urban infrastructure, housing, information technology and artificial intelligence, irrigation, and forestry and environment. It views the private sector not only as the engine of growth but also as the main driver of prosperity.

Rastriya Swatantra Party: Seven Percent Growth and Structural Reforms

The Rastriya Swatantra Party (RSP) has targeted an average annual economic growth rate of seven percent (at constant prices) over five years. It aims to push per capita income beyond 3,000 US dollars and bring the economy close to Rs 100 trillion.

The party promises to reduce the tax burden without decreasing state revenue, avoid retrospective taxation, and determine income tax thresholds based on family burden. It also plans to review Nepal’s fixed exchange rate with the Indian currency, introduce a “one-step” investment service system, and complete long-delayed national pride projects within two years.

RSP has pledged to bring cooperatives and microfinance institutions under stronger regulation by the central bank. Institutions with transactions exceeding Rs 500 million would fall under direct central bank supervision, while a powerful second-tier regulatory body would oversee smaller institutions. The party also promises to restructure the Securities Board, Nepal Stock Exchange (NEPSE), and CDSC to strengthen capital market governance.

On cooperative fraud cases, the party says its priority is refunding depositors rather than simply imprisoning operators. It has pledged to create legal pathways for settlement if cooperative managers demonstrate credible plans and resources to repay depositors. The party also claims that small depositors’ funds would be refunded within 100 days of forming a government, though it does not specify funding sources or define “small depositors.”

NCP: Double-Digit Growth and Poverty Reduction

The NCP (Communist Party of Nepal) has proposed a new phase of economic reform, targeting double-digit growth—above 10 percent—within five years through sustainable and productive use of natural resources and increased domestic and foreign investment. It aims to reduce multidimensional poverty from the current 20.15 percent to five percent within five years.

The party has identified six priority sectors: agricultural and rural transformation, energy and infrastructure, industrial and entrepreneurial promotion, information technology and digital economy, quality tourism and services, and social sector development. It also promises to support domestic industries, innovation startups, SMEs, digital infrastructure, and policy reforms while creating an additional 150,000 jobs annually to ensure 500,000 jobs per year.

Other Parties’ Economic Commitments

The Progressive Democratic Party (Pralopa) has set a target of achieving double-digit economic growth within the next two decades by maximizing the use of natural and human resources, domestic and foreign capital, and technology, while integrating economically with India and China. Strategic projects would include large hydropower plants, transmission lines, multi-lane highways, railways, airports, cable cars, irrigation systems, special industrial zones, mining, environmental protection, science and research, sports, and satellite development.

The Ujyalo Nepal Party has pledged to mobilize domestic capital while expanding cooperation between the private sector, cooperatives, and communities, alongside attracting foreign investment in priority areas. It aims to raise GDP to 70 billion US dollars by 2030 and 111 billion US dollars by 2035, transform Nepal into an upper middle-income country by 2035, expand exports to 10 billion US dollars by 2030 and 20 billion by 2035, and create nearly one million additional jobs annually.