On the occasion of its 10th anniversary, Nepalkhabar organized the 'Rising Nepal Summit 2025' at Soaltee Hotel in Kathmandu on Thursday (July 24, 2025) . One of the main attractions of the summit was the Nepalkhabar Conversation, where former Minister Minendra Rijal engaged in an interaction with former Prime Minister Pushpa Kamal Dahal 'Prachanda' on the topic "Mission 084: Double Investment, Double Employment."
During the conversation, former Prime Minister 'Prachanda' has expressed concern that he is noticing increasing level of dependency every single day. Prachanda, who is also the chairman of CPN (Maoist Center), stated Nepal's greatest obstacle to prosperity is institutionalized corruption. Similary, Rijal said Nepal is not China or India, it is among the top 20 to 22 countries. Below is the edited transcript of their hour-long conversation:
Prachanda
I looked at my record as Prime Minister for three terms and wondered why we become more and more dependent. Why did the industries sold to the private sector not work? I organized many meetings at Singha Durbar. I made studies on running the industries that were not working. When we moved to a liberal economy, there was a wave of dependency. We called the private public partnership concept socialism.
When Western intellectuals said that liberal economy leads to development, they retreated from it. Now, they are moving toward state protection, and also protecting the private sector in times of crisis. As for us, there seems to be a policy error in why the graph has gone down in all sectors of agriculture, industry, and energy.
In the past, when the youths were not in a position to go abroad, we were self-sufficient in food. We used to sell rice at home and send the rice sold by all farmers abroad. Why have we now reached a stage of importing food grains? Now it is time to review the policy.
Our emphasis in the constitution is no longer the same. There is a tendency to tamper with law-making. There is a need to maintain a certain national unity. Our focus must be on expanding national capital for Nepal’s development. While concerns exist about misplaced priorities, I’ve consistently emphasized building an independent, self-reliant economy through domestic capital growth. Private sector profitability is essential—without it, development stagnates.
We initiated transformative projects like the Mid-Hill Highway and North-South corridors and prioritized energy sector reforms under Ujyalo Nepal. However, governance remains a major challenge, with institutionalized corruption severely hindering progress.
Like China’s pragmatic approach ("It doesn’t matter if a cat is black or white..."), Nepal must incentivize private investment to accelerate growth. Recent efforts in energy and FDI summits have set benchmarks. I commend the private sector, especially in energy, for driving change. By fostering trust in domestic investors and a positive FDI climate, we can advance our constitutional vision of a socialism-oriented economy.
Minendra
You said that Nepal has reached a stage of importing food grains. Since 2048, the size of our economy has increased by 57 times. Per capita income has increased by 28 times. Some might say that inflation has also increased. Revenue, the size of the economy have increased. Looking at the 30-year record, it is not so bad. However, around 2,300 people board ships for foreign employments everyday.
Prachanda
First, I’d like to thank Nepalkhabar for organizing the Rising Nepal Summit 2025 and inviting me and Minendra Rijal for this conversation. I believe Nepal’s vision for economic growth and transformation is still not fully clear. However, as Prime Minister, I’ve worked to create new economic opportunities for prosperity—first through economic reforms, then through good governance, social justice, and inclusive development. These efforts have been recognized by Nepali society, intellectuals, and political circles. One thing I must clarify: We, as Maoists, are often wrongly portrayed as anti-capitalist. Since the peace process, we’ve consistently emphasized public-private collaboration and encouraged private sector engagement in Nepal’s development.
Minendra
When examining the "Double Investment, Double Employment" goal, foreign investment alone currently supports 360,000–370,000 jobs. Doubling this would require adding another 360,000–370,000 jobs. Nepal’s foreign direct investment (FDI) stands at NPR 56–56.5 billion, and the aim is to double it. However, Mr Kuvera Chalise clarified that the target includes both domestic and foreign investment combined.
Excluding agriculture, Nepal has 2.3 million jobs—adding 2.3 million more in three years is necessary. Former Finance Minister Dr Yuba Raj Khatiwada once noted that creating 1 million new jobs is achievable if Nepal grows steadily. With 500,000–550,000 people entering the labor market annually and 200,000–250,000 migrating abroad, generating 300,000–350,000 domestic jobs yearly would meet this target.
Regarding investment, Nepal’s annual domestic investment is around NPR 100 billion. The challenge lies in doubling this growth to boost employment and economic development. The focus must be on expanding both foreign and domestic investments to drive progress.
Prachanda
You cited development statistics. I have done the same post-republic. However, the disconnect between public expectations and policy outcomes has bred frustration. This demands collective accountability—from leaders, intellectuals, civil society, and the private sector. While progress exists, Nepal’s corruption rank worsens globally. Why? From bureaucracy to judiciary, institutional decay thrives. Celebrating stats alone won’t fix this. We must confront why systems fail—not just tout achievements.
Years after the constitution, critical laws remain undone. Bills stagnate in parliament. The 2006 peace accord and federalism were revolutionary, but implementation lags. Shared sacrifice built this framework; shared apathy risks its collapse. As a former rebel, I actively promoted private investment. Yet, bureaucrats still view businesses with suspicion—either as exploiters or cash cows. Conversely, the private sector shirks its social role. This mutual distrust stifles growth.
As many as 123 local governments under our party outperform peers—proving grassroots potential. But federal inertia persists. We’ve drafted plans for agriculture, tourism, and energy. Now, execution must follow. The constitution mandated a decade-long review. That time has come. Let’s amend pragmatically—not to dismantle federalism, but to make it work. Without course-correction, public disillusionment will deepen.
Minendra
Over the last 30–35 years, Nepal’s development path has been shaped by both national and global forces, like the post-1990 neoliberal wave. While this opened doors for private-sector growth, the world has since moved beyond rigid neoliberalism. Nepal saw its highest growth rates during this transition, but today, we face deeper questions about self-reliance. Post-conflict, Nepal made strides: tax-to-GDP ratios improved, hydro projects like "10,000 MW in 10 years" were proposed, and post-earthquake reconstruction attracted investment. Yet, COVID-19 and global supply shocks exposed vulnerabilities. Remittances sustain us, but youth emigration surges, and agriculture struggles to replace food imports.
Federalism was meant to decentralize power and accelerate development, but implementation has faltered. Public frustration grows, with some even demanding its repeal. The blame lies with political parties failing to defend and deliver on this system. We must justify federalism’s value—not just create it. While metrics like maternal mortality and GDP per capita show progress, reliance on imports and remittances reveal weakness. Past policies prioritized privatization, but many industries collapsed. Now, we debate: Should Nepal revive self-sufficient agriculture and energy, or lean further into global markets.
The constitution and peace accord were collective achievements, but their execution lacks unity. We need honest reviews—of policies, federalism, and economic models—to rebuild trust. The goal isn’t ideological debate but actionable steps to reduce dependency and deliver tangible progress. Let’s move beyond blame. Whether in power or opposition, all leaders must own their part in Nepal’s stagnation. Federalism isn’t the problem; our failure to make it work. The question isn’t "who’s wrong" but "how we fix it together."
Prachanda
Development and good governance aren’t destinations—they’re continuous journeys. Celebrating past achievements isn’t enough; we must confront where we’ve fallen short. After drafting an inclusive federal constitution, why did we stall on implementing education, healthcare, and employment as fundamental rights?
Repeating "we did well" breeds complacency. Let’s ask: Why were critical laws like the Federal Civil Service Act delayed for years? Why hide high-profile education reform reports instead of acting on them? What created today’s toxic political environment? My governments prioritized energy, diplomacy, and anti-corruption—yet systemic gaps persist. The solution? Ruthless self-review. When we acknowledge failures (like policing reforms we postponed), we unlock real progress. Numbers don’t lie, but neither do unmet promises. Nepal’s next leap requires honesty about both.
Minendra
We’ve amended laws to boost private investment—no more hurdles remain. In 1991, Nepal’s debt was 70% of GDP. Post-earthquake, it dropped to 20%, but reconstruction pushed it to 44%. This isn’t alarming, but 70% was unsustainable. Now, we focus on sustainability, tech, and gender equity—progress worth acknowledging. We measure shoe production accurately but miss nuances: Who produces them? Similarly, cigarette output (though harmful) reveals contrasts—Surya Nepal vs. Janakpur Cigarette Factory. Such details matter.
Remittances cover about 25% of state revenue. If they vanish, so does a quarter of our budget. Who’s brave enough to abandon this lifeline? Nepal must shift from blame games to granular execution—whether in private or public sectors. Forget ideologies or partisan finger-pointing. Progress demands focus on how—not who. Though my party leadership prefers restraint, I’ll speak candidly within bounds. Our President was acknowledged even by you, former Prime Minister, as honest—a standard I uphold. Nepal’s despair is undeniable—and dispelling it is our collective responsibility. Together, we must reignite hope by advancing the constitution and systems we built. Let’s bridge divides, not deepen them.
Prachanda
Thank you for speaking with dignity and restraint befitting a Prime Minister during this dialogue - despite our ideological differences. I believe, as the saying goes, "Through discussion comes understanding." May such debates continue until we find common ground. With this hope, I conclude my remarks. Thank you!
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