Nepal Communist Party Unveils Economic Plan to Shift from Import-Dependent Model to Production-Oriented Economy

The CPN (Unified Socialist) has placed significant emphasis on shifting the economic model from import-dependent and consumption-oriented to a production-oriented, export-promoting, and self-reliant model in its commitment paper.

The commitment paper, unveiled by Party Chairman Pushpa Kamal Dahal 'Prachanda' during a special program held at the party office in Parisdanda on Tuesday, sets the following objectives for changing the economic model:

• Achieving an economic growth rate of over 10 percent within the next five years through the judicious and sustainable use of natural resources, increasing domestic and foreign investment, developing a production system based on collectivism and cooperation, and efficient allocation of resources.
• Reducing the multidimensional poverty rate from 20.15 percent to 5 percent by minimizing economic and social inequality. Protecting and promoting production sectors through state-protected agriculture and industrialization policies.
• Gradually reducing import dependency, enhancing the capacity of the domestic private sector, and linking foreign investment to production, technology transfer, and employment.
• Laying the foundation for a green and digital economy through the prudent use of natural resources.
• Preparing a concrete foundation for a socialist-oriented economy by adopting a balanced and complementary development model among the private, cooperative, and public sectors.
• Developing each province as a distinct area for economic activity. To make the new phase of economic reform effective, the party has determined the following priority areas, with a strong focus on changing the economic model:

• Agriculture and Rural Economy Transformation: Commercial and collective farming, advanced technology, irrigation, and market assurance. Complete self-sufficiency in food and judicious use of natural resources (the 5 Js: Jal, Jamin, Jungle, Janashakti, Jyan).
• Energy and Infrastructure Development: Hydropower, renewable energy, and integrated corridor construction.
• Industrial and Entrepreneurship Promotion: Domestic industries, innovation-startups, promotion of small and medium enterprises, provincial specialized economic campaigns.
• Information Technology and Digital Economy: Digital infrastructure, e-commerce, and IT industry development, policy reforms.
• Quality Development of Tourism and Service Sector: Promotion of adventure, cultural, and environmental tourism.
• Social Sector: Investment in education, health, social security, and inclusive development.

Key Programs and Model Shift Steps: Emphasizing the change in the economic model, the party has proposed the following programs:

• Productive Employment: Adding an additional 150,000 jobs annually by utilizing fallow land and resources under public and private ownership for productive purposes. Operating a 'Returnee Entrepreneurship Program' for those returning from abroad.
• Private Sector Promotion and Partnership: Investment security, one-stop service system, and removal of syndicates.
• Collectivism and Cooperation: Integrating small landholdings to operate large farms, promoting cooperative industries, and making the community sector the fourth pillar while strengthening the three pillars of the economy.
• Economic Restructuring: Reducing production costs, developing a digital economy, mainstreaming the informal sector, import substitution, and export growth.
• Investment in Social Sector: Equal access to quality education and health.
• Utilization of Natural Resources: Judicious use of land, water, forest, and minerals.
• Effective Use of Federal System: Construction of industrial and agricultural corridors in the provinces.

Financial Sector Reforms: To support the economic model shift, there are also new steps in the financial sector:

• Incentivizing banks to invest in productive sectors.
• Setting targets for small and medium loans.
• Special packages for the revival of the cooperative sector.
• Making financial services simple and transparent through the FinTech concept.

The party presents this new phase of economic reform as the foundation for building socialism, claiming it will make Nepal self-reliant and prosperous. According to the party's commitment, only this model shift can end class exploitation, inequality, and dependency.