Kathmandu.  The commitment letter of the Communist Party of Nepal (CPN) has laid special emphasis on shifting the economic model from import-dependent and consumption-oriented to production-oriented, export-promoting and self-reliant model.

The commitment letter made public by party coordinator Pushpa Kamal Dahal ‘Prachanda’ at a special programme held at the party office in Parisdanda today has set out the following objectives for the change in economic model.

• Achieve economic growth rate of more than 10 percent in the next five years through judicious and sustainable use of natural resources, increase in domestic and foreign investment, development of production system based on collectivism and cooperation, efficient allocation of resources.

– Reduce multidimensional poverty from 20.15 percent to 5 percent by reducing economic and social inequality.

– To protect and promote manufacturing areas through state-protected agriculture and industrialization policy.

– Gradually reduce import dependency by enhancing the capacity of the domestic private sector and linking foreign investment with production, technology transfer and employment.

• Lay the foundation for a green and digital economy through judicious use of natural resources.

– To prepare a solid base for socialism-oriented economy by adopting a balanced and complementary development model among private, cooperative and public sectors.

– To develop each province as an area of special economic activity.

Priority Areas and Strategies

In order to make the new phase of economic reform effective, the Party has set the following priority areas, including the need to change the model of the economy:

• Transformation of agriculture and rural economy: commercial and collective farming, advanced technology, irrigation and market assurance. Complete self-sufficiency in food and judicious use of natural resources (5h).

• Energy and Infrastructure Development: Hydropower, renewable energy and construction of integrated corridors.

• Promotion of industrial and entrepreneurship, promotion of indigenous industries, innovation-start-ups, small and medium enterprises, regional special 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 adventurous, cultural and environmental tourism.

• Social sector: Investment in education, health, social security and inclusive development.

Major programs and model shifts

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Emphasizing on changing the model of the economy, the party has proposed the following programs:

• Productive Employment: To create 150,000 additional jobs every year by productively utilizing barren public and private land and resources. Conducting a returnee entrepreneurship program for foreign returnees.

– Private sector promotion and partnership: Investment protection, one-door system and removal of syndicates.

• Collectivism and cooperatives: Establish big farms by consolidating small land, promote cooperative industries and strengthen the three pillars of economy to make the community sector the fourth pillar.

• Restructuring the economy: reducing the cost of production, developing a digital economy, making the informal sector inclusive, import substitution and export growth.

• Investing in social sectors: Equal access to quality education and health.

• Use of natural resources: judicious use of land, water, forests 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 model shift of the economy:

– Encourage 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 the concept of fintech.

The party has presented the new phase of economic reform as the foundation for socialism and claimed that it would make Nepal self-reliant and prosperous. According to the party’s commitment, only this model shift can end class exploitation, inequality and dependence.