Communist Party Pledges Shift from Consumption-Driven to Production-Oriented Economic Model

The CPN (Communist Party of Nepal) has placed significant emphasis on shifting the economic model from import-dependent and consumption-oriented to one focused on production, export promotion, and self-reliance in its commitment paper.

In the brief commitment paper unveiled by Party Coordinator Pushpa Kamal Dahal 'Prachanda' during a special program organized at the party office in Parisdanda on Tuesday, the following objectives have been set 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 rate of multidimensional poverty from 20.15 percent to 5 percent while 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.

- Establishing the foundation for a green and digital economy through the prudent use of natural resources.

- Preparing a concrete basis 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 sectors and strategies, with a strong emphasis 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 (5 Js).

- 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. Major 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 lands 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, and removal of syndicates.

- Collectivism and Cooperation: Operating large farms by integrating small landholdings, promoting cooperative industries, and making the community sector the fourth pillar by strengthening the three pillars of the economy.

- Economic Restructuring: Reducing production costs, developing a digital economy, making the informal sector inclusive, 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 There are also new steps in the financial sector to support the economic model shift:

- Encouraging banks to invest in productive sectors.

- Setting targets for small and medium loans.

- Special package for the revival of the cooperative sector.

- Making financial services simple and transparent through FinTech concepts. 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.