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Newly appointed Finance Minister Dr Swarnim Wagle has assumed office today. 

After taking oath of office and secrecy before President Ram Chandra Paudel, Finance Minister Wagle reached the Finance Ministry and assumed office. 

Taking charge of his responsibility, he expressed the commitment of implementing important suggestions of the High-Level Economic Reform Recommendation Commission, 2081. 

Finance Minister Wagle decided to dissolve the Department of Revenue Investigation as well as forwarding a process immediately to scrap 15 different acts or for their amendment.  

An economic status paper up to March 25, 2026 will be prepared within five days, and a 100-day, half-yearly and annual action plans will be prepared for effective implementation of the government's election commitment paper, he added.

The new Finance Minister opined that priority will be given to security and promotion of private enterprises and businesses, facilitating large development projects as well as formulating new bills or amendment to existing laws in order to remove procedural complexities. 

"Now, an environment will be created to forward large projects smoothly," he underlined, sharing that a policy will be adopted to solve problems seen in the economy holistically.

Implementation of recommendations of the Public Expenditure Review Commission, growth of domestic production, employment creation and formulation of transformative budget will be prioritized, viewed by Minister Wagle. 

The acts that are in the process of scrap in accordance with the report of High-Level Economic Reform Recommendation Commission are—Income Ticket Charge Act, 2019, Black Marketing and some other Social Offences and Punishment Act, 2032,  Private Forest Nationalization Act, 2013, Administrative Procedures (Regulation) Act, 2013, Compensation Act, 2019, Birta Abolition Act, 2016,  Act Prohibiting Birta Land Owners From Renting Out the Birta Land For Economic Gains, 2015, Revenue Leakage (Investigation and Control) Act, 2052, Act Restricting Invest Abroad, 2021 and Nepal Agency Act, 2014.

Similarly, Provincial Development Plan (Implementation) Act, 2013, Import-Export (Control) Act, 2013, Social Practices Reform Act, 2033, Act to Provide Enhancement of Circulation of Nepalese Currency, 2014,   Act relating to Institutions Acting as Financial Intermediary, 2055 will also be scrapped.  

Also the Vice President of Rastriya Swatantra Party (RSP), Wagle shared that the incumbent government would forward a comprehensive roadmap for economic and legal reforms by adopting private sector-friendly policy.  

Newly appointed Finance Minister Wagle is an internationally recognized figure and experienced in the country's economic policy leadership.

Newly appointed Home Minister Sudan Gurung has decided to simplify service delivery and adopt a zero-tolerance policy towards corruption.

Assuming office at the Ministry of Home Affairs today, he directed the staff and said that strict action would be taken against corrupt individuals.

"There will be zero tolerance on corruption. If someone asks for a bribe, it is not simply allowed," he said.

Home Minister Gurung, mentioning that he came to lead the ministry to work effectively for the people, instructed the ministry officials to arrange for quick service delivery through a single-window system. 

He proclaimed that he would focus on speaking less and delivering results.

"Service delivery has been made the main priority. The situation where one (service seeker) has to run from rooms 1 to 2 to 3 or A, B, C must end. Service seekers should not be made to visit individual staff to get work done. Good governance can be brought about in this way," he said.

Stating that everyone must adopt the decision of the cabinet to implement the mandate of Gen Z, he made it clear that no one has the discretion not to implement the government's decisions.

During the instructional address, Home Minister Gurung mentioned that the current changes were made possible through the sacrifices of the Gen Z youth and had the ministry staff present on the occasion to observe a one-minute silence in memory of the martyrs.

Before that, Home Secretary Raj Kumar Shrestha, the Inspector General of Nepal Police, the Inspector General of the Armed Police Force Nepal, the Chief of the National Investigation Department, and senior officials of the ministry welcomed the newly-appointed Home Minister to the Ministry in Singha Durbar.

Today, Balendra Shah takes the oath as the 42nd Prime Minister of Nepal. Shah enters Singha Durbar amid towering public expectations and daunting structural challenges. His party, the Rastriya Swatantra Party, emerged from the March 5 election with a near-two-thirds majority in the House of Representatives. From corruption to jobs, from bureaucratic gridlock to foreign policy tightropes, his premiership will be defined not by rhetoric, but by action. This marks the first time in Nepal's recent history that a new generation of leaders has reached the helm of power.

Corruption on trial

There is a widespread public perception that corruption has reached unprecedented levels over the past decades. Scandals involving public procurement, infrastructure projects, and state enterprises have long dominated headlines, public discourse, and popular anger. During the campaign, voters expected swift and decisive action on major corruption cases. However, many corruption networks span political parties, business interests, and the bureaucracy. Dismantling them will invite fierce opposition from multiple quarters. Anti-graft bodies are slow and politicized, and without structural reform, addressing corruption in any meaningful way will be extremely difficult.

Service delivery

Nepalis are frustrated. Slow service delivery—be it in citizenship processing, construction permits, tax administration, or infrastructure rollout—has become a symbol of state dysfunction. The prolonged delay in printing driving licenses is a case in point; many people have waited over three years without receiving theirs. Passport delays tell a similar story. Both Shah and his party have promised rapid transformation in government services, but the bureaucratic machinery he inherits is rigid, hierarchical, politicized, and deeply resistant to change. Past prime ministers have struggled to push through such reforms.

Job creation

Unemployment was among the top issues driving voters in the March election. Nepal’s youth unemployment rate of 20.6 percent is the highest in South and Southeast Asia. Shah’s critics argue that job creation cannot happen overnight and requires structural reform, private investment, and time. Yet the electorate wants immediate results. The RSP’s election manifesto has promised 1.2m jobs annually.

According to data from Nepal Rastra Bank, the national GDP at current prices has reached Rs 6,107.2bn, but the composition of this figure reveals a troubling reality. The service sector dominates at 62.01 percent, while agriculture and industry contribute a mere 25.16 percent and 12.82 percent, respectively, according to Kathmandu-based economist Laxman Neupane. This heavy reliance on services has failed to generate sufficient high-quality employment or meaningful value-added growth, placing immense pressure on the incoming RSP government to pivot toward aggressive industrial expansion, he adds.

A business-friendly Nepal

Nepal’s economic potential is considerable—spanning hydropower, tourism, agriculture, and, more recently, information technology services. Realizing that potential requires systemic reform. Red tape remains a major obstacle, with business registration, licensing, land acquisition, and import-export approvals requiring multiple clearances across agencies. 

Foreign assistance has declined in recent years, and major donor countries are increasingly signaling a shift toward facilitating private investment rather than direct aid. Every major power sees opportunity in Nepal, but all are calling for legislative reform, digitalization of services, and stronger investor protections. Foreign investors will be closely watching how Nepal balances openness with regulatory certainty. Failure to attract industrial investment means Nepali youth will have little choice but to continue relying on foreign labor markets, says US-based analyst Sushil Thapa. At the same time, instability in the Middle East and ongoing international conflicts are making those markets increasingly risky and uncertain, he adds.

Economic challenges

Nepal’s economy presents a mix of apparent stability and deep structural fragility. Macroeconomic indicators, including low inflation and strong foreign exchange reserves of around Rs 3,200bn, paint a broadly positive picture. Yet domestic demand remains weak, banks face rising non-performing loans, and investor confidence is low. The economy is heavily dependent on remittances, which account for nearly 24 percent of GDP, while manufacturing and industry are shrinking and youth migration continues to rise. The RSP government faces the task of translating electoral enthusiasm into tangible economic growth.

Its ambitious goals include doubling GDP to $100bn within five years, raising per capita income to $3,000, and creating 1.2m jobs annually. Key challenges include reforming import duties, broadening the tax base, attracting foreign investment without incurring debt traps, and managing potential labor crises stemming from Gulf instability. While genuine prospects for reform and growth exist, political constraints and high public expectations make the path forward complex.

Managing multiple social groups

The Shah government faces a complex and delicate challenge in responding to the demands of multiple societal groups, each with distinct and pressing concerns. Cooperative victims, who have suffered financial losses due to mismanaged or failed cooperatives, seek justice and compensation, requiring careful legal and administrative handling. Informal lenders may press for regulatory leniency, creating a difficult balance between formal financial governance and existing lending practices. 

Teachers and other professional groups are likely to demand fair wages, better benefits, and improved working conditions, reflecting broader concerns about public sector reform and labor rights. Various other community and interest groups will also mobilize, making the public sphere a forum for multiple, often competing demands. Navigating all of this will require not only policy acumen but also strong negotiation skills, empathy, and the ability to prioritize solutions that uphold social harmony while addressing legitimate grievances.

Managing major powers

Relations with India, China, and the United States will remain one of the defining foreign policy challenges for Shah. All three countries are waiting to hear his strategic blueprint before making their next moves. They view RSP as a genuinely new political force and want to understand Balen’s approach before offering commitments.

China has emerged as a key player in Nepal’s foreign policy calculus. Beijing has signaled patience alongside clear expectations. It is willing to engage broadly with the new administration in areas such as artificial intelligence, rural digitization, infrastructure development through concessional loans, and cooperation in health, education, and agriculture. At the same time, China has sent an unmistakable message about its security and strategic interests in Nepal. Shah’s choices will determine whether Nepal can leverage China’s willingness to invest without compromising its sovereignty or regional equilibrium.

India presents a more nuanced challenge. While it remains Nepal’s most vital economic partner, New Delhi is closely watching how the new government handles longstanding bilateral disputes. Economic cooperation will likely remain central, but Nepal must tread carefully to avoid straining this critical relationship. The United States, meanwhile, offers opportunities primarily in business and security cooperation. With USAID assistance having significantly declined, American private investors are looking for a favorable investment climate. Shah’s administration will need to demonstrate political stability, regulatory clarity, and transparency to attract such investment while aligning with broader US interests in the region.

Intra-party unity

Nepal’s political history since the 1950s is filled with prime ministers brought down not by external adversaries, but by fractures within their own parties. The collapse of KP Sharma Oli’s government in 2020, driven by intra-party conflict, stands as a cautionary tale for Shah. Despite a strong electoral mandate, the RSP remains a young party with limited institutional experience. Aligning its members around a unified agenda will require patience, sustained consultation, and strategic delegation. The working relationship between Balen Shah and RSP Chair Rabi Lamichhane is something many observers are watching closely.

Cross-party dialogue

Cross-party cooperation will be equally important. While the RSP commands a strong mandate in the House of Representatives, it holds no seats in the National Assembly. Major legislation will therefore need to be negotiated with other parties, particularly the Nepali Congress and CPN-UML, to ensure passage. Outside Kathmandu, provincial and local governments remain dominated by traditional parties. Shah’s adversarial stance toward those parties could ultimately prove a liability for his own agenda.

Building a capable team

When Shah served as Mayor of Kathmandu Metropolitan City, he built a small, focused team to manage different areas of work. The role of Prime Minister demands something broader and more sophisticated. Unlike the mayoralty, the premiership requires a different level of institutional coordination and strategic thinking, says New Delhi-based researcher Aditi Paul. Managing sensitive matters of security and trade with neighboring countries calls for diplomatic finesse. Shah will need to rely on experienced advisors and assemble a capable team equipped to handle Nepal’s complex regional dynamics, she adds.

Prime Minister Balen Shah expanded the Cabinet on Friday.  He expanded the Cabinet soon after he took the oath of office and secrecy at Sheetal Niwas.

The ministers recommended by the Prime Minister took the oath of office and secrecy amidst a function at Sheetal Niwas.

The names of some ministers were finalized following a discussion between Rastriya Swatantra Party President Rabi Lamichhane and Parliamentary Party leader Shah.

According to a source at the RSP, Dr Swarnim Wagle has been appointed as Finance Minister, Sudan Gurung as Home Minister, Shirshir Khanal as Foreign Minister, Sunil Lamsal as Minister Physical Infrastructure, Biraj Bhakta Shrestha as Energy Minister, Khadka Raj Ganesh Paudel as Tourism Minister, Sasmit Pokharel as Education Minister, Sobita Gautam ass Minister for Law and Parliamentary Affairs, Pratibha Rawal as Minister of General Administration, Bikram Timilsina as Minister for Communications and Information Technology, Nisha Mehata as Minister for Health and Population, Gita Chaudhary as Agriculture Minister, Sita Badi as Minister for Women and Children and Deepak Shah was minister without portfolio.