Kathmandu: Following its emergence as the largest party in the 2026 House of Representatives elections, the Rastriya Swatantra Party (RSP) is moving forward with intensive preparations to form the next government. During the election campaign, the party’s manifesto placed economic reform at its core, highlighting productivity growth, regulatory modernization, an investment-friendly climate, the digital economy, and financial sector restructuring as its primary agendas.
As the party transitions toward governance, there is significant public interest in how these commitments will be translated into action. National News Agency (RSS) has analyzed the key economic pillars outlined in the RSP’s pledge document.
The RSP manifesto identifies economic prosperity rooted in stability and increased productivity as the fundamental pillar of national progress. The party envisions a long-term path to wealth by maximizing limited time, capital, and resources to achieve high-quality, competitive, and sustainable production. This roadmap emphasizes the need for effective coordination between a private sector willing to take risks and a capable, transparent, and facilitation-oriented public sector.
The election document clearly states that the private sector will lead in job creation, the supply of goods and services, revenue contribution, and the flow of investable capital. In this framework, the government’s role will be strictly limited to that of a regulator and facilitator, ensuring a level playing field without overstepping into market operations.
Furthermore, the party committed to creating a premier business-friendly environment by dismantling policy corruption and artificial market barriers while encouraging innovation, entrepreneurship, and healthy competition. The RSP expressed a keen awareness that if Nepal fails to convert its youth-centric demographic dividend into an opportunity within the next 10 to 15 years, the country risks falling into a long-term low-income trap.
Consequently, the party intends to prioritize productivity growth, skill development, capital formation, and technology-driven industrialization as national imperatives.
To combat deep-rooted issues such as cartels, unfair competition, rent-seeking, and policy manipulation, the manifesto promises to establish and strengthen professional, transparent, and powerful regulatory bodies free from political interference. Within the framework of a social market economy, the RSP aims to adopt a balanced and sustainable economic model tailored to Nepal’s realities, effectively ending the improper collusion between politics and regulation while promoting social responsibility.
The proposed policy combines a liberal approach to promote private sector dynamism and creativity with the equitable redistribution of national income through investments in public education, health, transport, housing, and social security. The party’s goal for a welfare state extends beyond mere benefit distribution; it seeks to transform the nature of growth itself to build a foundation for long-term economic, social, and environmental balance.
To support middle-class families, the party plans to review income tax thresholds based on “family burden,” allowing for more disposable income.
On the legislative front, the RSP announced plans to repeal approximately two dozen laws that have become obstacles or irrelevant to economic progress. By systematically removing cumbersome acts and discretionary procedures, the party aims to reduce production costs, improve the business climate, and attract both domestic and diaspora investment into priority growth sectors.
As the leading party, the RSP has set a goal to lay the foundation for Nepal to become a “respectable middle-income country” by maintaining an average annual economic growth rate of seven percent at constant prices over the next five years.
Based on this, they have taken an ambitious target to push per capita income above $3,000 and expand the economy toward a US$ 100 billion valuation within five to seven years. Decisions regarding which laws and regulations to scrap or amend will be guided by independent analysis, the 2081 report of the High-Level Economic Reform Suggestion Commission, and recommendations from major business chambers like CNI and FNCCI.
Given its stance as a party advocating for a liberal economy with social justice, the RSP has stated it will reduce the overall tax burden based on advanced understandings with the private sector, ensuring that total revenue does not decline. The party promises that tax laws will not be applied retroactively and that planned tax evasion will be strictly curtailed.
To support middle-class families, the party plans to review income tax thresholds based on “family burden,” allowing for more disposable income.
Provisions will be made to allow specific deductions from taxable income for education, health, and childcare expenses, while institutional savings programs will be encouraged to foster long-term financial stability. Additionally, the manifesto includes a pledge to involve international experts in studying and reviewing the exchange rate system with the Indian Rupee, which has remained pegged for over three decades.
To facilitate domestic and foreign investment, the party intends to implement a true One-Stop Service Center where investors can submit files in a single location without having to visit multiple government agencies. Business registration will be made easy, fast, and free through digital platforms.
The party also plans to reform the Revenue Tribunal and abolish the Revenue Investigation Department, replacing it with a professional unit staffed heavily by Chartered Accountants to control corruption and financial irregularities more effectively.
The RSP’s strategy for public enterprises includes categorizing them for potential mergers, moving some to public-private partnership models, bringing in strategic partners for others, or decentralizing their operations. In some cases, the ownership of fixed assets will be brought directly under the government’s name.
Public projects will be executed in “mission mode” with clear objectives, guaranteed budgets, and strict timelines, ensuring that project chiefs and key staff are not transferred until the work is completed.
The party pledged to implement a “result-oriented time-bound action plan” to complete National Pride Projects that have been stagnant for 12 years within the next two years. Over the next five years, ten new projects in diversified sectors will be added to the National Pride list and advanced through a fast-track model.
Regarding financial sector reform, the RSP intends to replace the current loose regulation of cooperatives and microfinance with a powerful supervision system under the direct oversight of the Nepal Rastra Bank. Cooperatives and microfinance institutions with transactions exceeding 500 million rupees will be brought under mandatory central bank regulation, while a high-level “second-tier regulator” will be established to manage smaller institutions.
To end the “debt trap” caused by dual lending, both cooperatives and microfinance institutions will be linked to the Credit Information Bureau, ensuring loans are only issued based on a borrower’s actual capacity. The party also aims to end high interest rates and unfair service charges by implementing an automated system that links interest rates to base rates with a limited premium.
Within the first 100 days of government formation, the RSP plans to return deposits to small savers and establish an “Integrated Savings Security Fund” to protect citizens’ earnings. Following a policy of “resolution through listening, not just imprisonment,” the party will provide legal avenues for cooperative managers or boards willing to return funds to reach settlements.
Recognizing Nepal’s unique geography, the RSP places the concept of a “Borderless Economy” at the center of its national strategy, aiming to shift from a labor-exporting economy to a service-oriented and knowledge-based one.
Loan sharking and exploitative transactions will be defined as economic crimes, with the party vowing to dismantle these networks within five years. A high-powered “Fast-Track Justice Task Force” will be formed to investigate illegal documents and return seized land and assets to victims.
To make the capital market transparent and investor-friendly, the party will reform regulations to bring NEPSE up to international standards, adopting a zero-tolerance policy against insider trading and market manipulation. Pension funds, insurance companies, and mutual funds will be encouraged to invest actively, and the debt and bond markets will be developed. Furthermore, the party plans to simplify policies for Non-Resident Indians to trade on NEPSE and operationalize the commodities market as soon as possible.
Recognizing Nepal’s unique geography, the RSP places the concept of a “Borderless Economy” at the center of its national strategy, aiming to shift from a labor-exporting economy to a service-oriented and knowledge-based one. This digital transformation will be supported by a revised and expanded “Digital Nepal Framework,” focusing on policy reform, infrastructure development, and increased public-private investment.
In a departure from traditional reliance on remittances, the RSP’s manifesto presents an ambitious plan to make Information Technology (IT) the country’s primary economic backbone. By declaring IT a “National Strategic Industry,” the party aims to make it the largest export sector, targeting $30 billion in IT exports within the next 10 years. To achieve this, an autonomous IT Promotion Board will be established, offering tax incentives, simplified profit repatriation for foreign investors, and subsidized loans backed by intellectual property as collateral.
To position Nepal as a global tech hub, the party plans to build state-of-the-art digital parks in all seven provinces, aiming to create 500,000 jobs for the youth. This will involve massive investment in communication infrastructure, data centers, cloud services, and cybersecurity to build a robust digital ecosystem.
The RSP envisions Nepal as a “digital-first” nation, aiming to build a “cashless society” by integrating all economic transactions into a unified digital platform, which they believe will help control corruption and revenue leakage. The party also committed to immediately removing technical and legal hurdles for international payment gateways to connect local startups with global markets.
Transforming Nepal from an exporter of raw electricity to an exporter of Artificial Intelligence (AI) and computational power is another key goal. Leveraging Nepal’s clean energy and cool climate, high-capacity data centers will be established near hydropower projects to export “Green GPU Computing” services across Asia.
Within a year, a clear national policy on cryptocurrency regulation and consumer protection will be introduced, with crypto-mining potential explored through pilot projects.
Finally, to embrace changes in the global labor market, the RSP will ensure that Nepalis can work for foreign companies while staying in the country. This includes amending the Labor Act to legally recognize remote work and digital employment. Additionally, the party plans to introduce special visas and residency policies to attract “Digital Nomads” to Nepal.
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