Kathmandu: Nepal’s private sector increasingly feels that the “socialism-oriented” economy and the “three-pillar economic policy” envisioned by the current constitution no longer fully address the realities of a changing global economy or the country’s actual development needs. In this context, some fundamental and structural constitutional reforms appear necessary to achieve sustainable economic growth and long-term prosperity.
Rather than adhering to a vague interpretation of socialism, Nepal now needs to embrace a competitive open-market economy grounded in social justice. The state alone cannot shoulder the entire burden of development. Public-private partnerships should therefore move beyond policy rhetoric and receive formal constitutional recognition. Such a step would encourage private investment while creating a clearer framework for the state’s responsibilities.
Investors are willing to commit capital only when they are assured that their property and businesses are protected. Article 25 of the Constitution should be amended to guarantee fair market-value compensation whenever the state acquires private property, along with the right to appeal through an independent valuation mechanism. Likewise, establishing the protection of industry and enterprise as a fundamental right would significantly strengthen Nepal’s investment climate.
The politicization of trade unions has long remained a major obstacle to Nepal’s industrial development. Trade unions should function independently in the interests of workers and institutional productivity, rather than as extensions of political parties. At the same time, the overlapping tax burdens that emerged under federalism have placed excessive pressure on businesses. A single-window tax system, where businesses do not have to deal with multiple authorities after paying taxes once, could substantially improve Nepal’s ease of doing business.
The private sector should not be viewed merely as an entity to regulate. It is the primary engine driving economic growth. Umbrella organizations such as the Federation of Nepalese Chambers of Commerce and Industry should receive formal constitutional recognition, and their participation in economic policymaking should be made mandatory. The role of the state today must evolve from that of a regulator alone to that of a facilitator and promoter of economic activity.
The current three-tier governance structure has become increasingly expensive and inefficient, while confusion in project implementation continues to hinder capital expenditure. Nepal should not shy away from reviewing its constitutional framework to create a governance system that is financially sustainable and results-oriented. Laws governing land ceilings and the use of natural resources must also be updated to meet the demands of modern industry and real estate development.
Nepal’s constitution should become more than a document safeguarding political rights; it should serve as a roadmap for economic prosperity. Only by building trust with the private sector, fostering an open and competitive market economy, and removing legal and bureaucratic barriers can the country achieve its vision of a prosperous Nepal. The proposed constitutional amendments are not merely intended to benefit the private sector, but rather to inject dynamism into the national economy as a whole.
(These views were expressed by the president of the Federation of Nepalese Chambers of Commerce and Industry during consultations organized by a task force formed by the Prime Minister to gather recommendations on constitutional amendments from representatives of industry, commerce, and the private sector.)
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