New Finance Minister Dr. Swarnim Wagle Assumes Office, Pledges Major Economic Reforms

Kathmandu. Newly appointed Finance Minister Dr. Swarnim Wagle has assumed office. After taking the oath before President Ramchandra Paudel, he formally took charge at the Ministry of Finance today.

Assuming office, Finance Minister Wagle committed to implementing the significant recommendations of the High-Level Commission for Economic Reform Suggestions, 2081. He announced the decision to immediately proceed with the abolition of the Revenue Investigation Department and the scrapping or amendment of fifteen different acts, as per the commission's recommendations.

Finance Minister Wagle stated that the 'Economic Status Report' up to Chaitra 11, 2082, would be prepared within five days, and 100-day, semi-annual, and annual action plans would be formulated to operationalize the government's election manifesto. He mentioned that the government would move towards effective implementation by internalizing the manifesto.

According to him, priority will be given to formulating new bills and amending existing laws to ensure the security and promotion of private enterprise and business, facilitate large development projects, and remove procedural hassles. "An environment will now be created for large projects to move forward swiftly," he said.

Finance Minister Wagle indicated that the policy would be to solve the problems facing the economy holistically, rather than in fragmented parts, emphasizing systemic reforms by removing discretionary powers. He informed that implementing the recommendations of the Public Expenditure Review Commission, increasing domestic production, creating employment, and building a transformative budget would be prioritized.

He also mentioned that the effort to promote an electronic governance system and move towards a 'paperless' and 'cashless' system has been initiated from the Ministry of Finance itself. Furthermore, he stated that the current international situation, especially the issues arising in the Middle East, would be analyzed minutely, and their impact managed through inter-agency coordination.

The acts slated for abolition process according to the report of the High-Level Commission for Economic Reform Suggestions include: Income Tax Surcharge Act, 2019; Black Market and Some Other Social Crimes and Penalties Act, 2032; Private Forest Nationalization Act, 2013; Administrative Procedure (Regulation) Act, 2013; Compensation Act, 2019; Birtas Abolition Act, 2016; Act Prohibiting Birtawal from Collecting/Receiving Money in Birtas, 2015; Revenue Leakage (Investigation and Control) Act, 2052; Act Prohibiting Investment Abroad, 2021; Nepal Agency Act, 2014; Provincial Development Plan (Implementation) Act, 2013; Export-Import (Control) Act, 2013; Social Behavior Improvement Act, 2033; Nepali Currency Circulation Enhancement Act, 2014; and the Act Relating to Institutions Conducting Financial Intermediation, 2055.

Wagle, who is also the Vice-Chairman of the Rastriya Swatantra Party, stated that the current government, having received a historic mandate, would adopt private sector-friendly policies and advance a broad roadmap for economic and legal reforms.

The appointment of the new Finance Minister Dr. Wagle is recognized as that of an experienced individual with international recognition in the country's economic policy leadership. Placing Wagle in the second seniority in the newly formed cabinet suggests that the government's economic agenda is a high priority.

Wagle, elected as a member of the House of Representatives from Tanahun Constituency No. 1, achieved an impressive victory in the 2082 elections, securing 38,040 votes. Born on Jestha 16, 2031 BS in Gorkha, Wagle has been active in the democratic movement since the 2046 People's Movement. Wagle has previously served as the Chief Economic Advisor for the Asia-Pacific Regional Bureau at the United Nations Development Programme (UNDP).

He has also worked as a Senior Economist at the World Bank, contributing to various aspects of economic transformation in developing nations. Furthermore, he has experience in formulating national development strategies, inter-ministerial coordination, and guiding long-term plans while serving as a member and later Vice-Chairman of the National Planning Commission.

He has also held responsibilities as a consultant for international organizations such as the Asian Development Bank and the International Trade Centre, as a former Senate member of Kathmandu University, and as a member of the World Bank's 'South Asia Champions Group.'

Academically, Wagle possesses a very strong background. He holds a bachelor's degree from the London School of Economics, a master's degree in International Development from Harvard University, and a Ph.D. in Economics from the Australian National University.

Wagle is also active in terms of writing and intellectual contribution. Books co-edited by him, such as 'The Great Upheaval' and co-authored 'The Rise of the South,' have been published by international publishers.

Wagle's appointment as Finance Minister comes amidst significant challenges for Nepal, including sluggish economic growth, declining revenue collection, rising public debt, and low implementation of development expenditure. In such a complex situation, concrete reforms are expected from Wagle, who possesses international development experience and long practice in policymaking.

The main challenges for Wagle in the coming context appear to be maintaining economic stability while creating employment, increasing investment, restoring private sector morale, and strengthening fiscal discipline in the federal structure. While expectations are high that he will advance reformist agendas based on his past activism in policymaking and international experience, the extent to which his effectiveness will be realized, given political pressure, administrative complexities, and structural weaknesses, remains an open question.