With the parliamentary elections around the corner, political parties are busy finalising their election manifestos. Yet, there is a growing fear that these documents will once again be filled with lofty political promises while the core issue of jobs creation remains largely unchanged and inadequately addressed.

Nepal, within just three years, has seen governments collapse under the weight of mass protests led largely by Gen Z, reflecting deep frustration among young people. Shaky economic fundamentals, weakened further by corruption and chronic unemployment, have emerged as the true fault lines of political instability.

A recent World Bank report highlights that Nepal is currently undergoing a remarkable demographic shift, with the working-age population rising rapidly. By 2050, the country will need to create at least 6.5 million jobs to fully capitalise on its demographic dividend. However, more than 12 million working-age people are currently inactive, significantly constraining national productivity and economic growth.

Among the private sector leaders The Post spoke to about the priorities of political parties ahead of the elections, many expressed concern that election discourse has lately been dominated by political maneuvering—who will be the next prime minister or cabinet ministers—rather than concrete plans to generate jobs, revive industries and strengthen the economy.

According to them, internal power equations in political parties continue to shape the agenda, while credible commitments on economic reform, investment promotion and job generation remain largely absent.

Birendra Raj Pandey, president of the Confederation of Nepalese Industries, said Nepal has witnessed numerous political changes since 1950, including shifts in regimes, governance structures and constitutions.

“Our entire time has largely revolved around political rhetoric, and the economy has never truly been at the centre stage of any political party,” said Pandey.

“As there were no economic returns, our industrial and business sectors weakened, capital formation declined and the core of our industrial strength eroded,” he said.

“As a result, people are leaving the country in large numbers.”

Private sector representatives stressed that those aspiring to be members of parliament must adopt policies that actively promote industries and businesses—especially small, medium and large-scale enterprises—and boost local production.

Nepal’s trade deficit has continued to widen due to a sharp rise in imports, while the performance of exports has been dismal for decades.

“All these factors combined show that our economy has not grown in a sustainable manner,” said Pandey.

Policy instability, he added, has become one of the biggest obstacles to economic growth.

Frequent changes in government, lack of policy continuity and entrenched corruption have created an unpredictable environment, discouraging long-term investment.

Pandey said political parties should clearly articulate a collective vision in their manifestos for moving the country forward.

“The aspiration is that the younger generation should be able to see a future in their country—one where opportunities are created, good governance is strengthened and prospects emerge from within,” he said.

Hem Raj Dhakal, vice-president of the Federation of Nepalese Chambers of Commerce and Industry, echoed similar concerns, describing political instability as the root cause of Nepal’s economic slowdown.

“If the economy had gained momentum, young people would have found jobs at home and the violent Gen Z movement would not have happened,” said Dhakal.

“Development has not been completely absent, but programmes have not focused on youth and the economy.”

Dhakal recalled that reforms introduced in the late 1980s led to the opening of hospitals, banks, insurance companies and colleges, creating new investment opportunities. But now, particularly after the Covid-19 pandemic, global economic pressures have intensified the need for countries like Nepal to create jobs domestically.

The federation has long been advocating a progressive tax system, tax reforms to broaden the base, introduction of a credit law, promotion of the digital economy and budgets focused on high-potential sectors.

“We have consistently said that policy reforms and stability are necessary, and that outdated laws need to be amended,” said Dhakal.

While some steps have been taken, the private sector argues they have not amounted to comprehensive reforms. As a result, industries and businesses have struggled to grow, job creation has lagged and public frustration has mounted.

Stakeholders also pointed to inefficiencies in public services, with people forced to stand in long queues for driving licences, passports and land revenue services—often a result of corruption and poor governance.

“We are telling industrialists, traders and the general public that when election candidates ask for votes, they should be questioned about their economic agenda,” said Dhakal. “What is their plan for employment? How will they promote industries and businesses in their constituencies?”

“We are also telling political parties that their manifestos must be economic manifestos rather than power-centric political documents,” he added.

Umesh Prasad Singh, president of the Federation of Nepal Cottage and Small Industries, said political parties must create an environment conducive to opening and operating factories, particularly by promoting startups, which could keep thousands of Nepalis from seeking work abroad.

With economic activities yet to perk up after the Covid pandemic, political parties should be put under pressure to provide a roadmap for sustainable economic growth, said Singh. “Plans to revive small and cottage industries on the verge of collapse should be a key component of their election manifestos.”

Entrepreneurs also stressed the need for policies to revive sick industries, generate skilled manpower and make Nepali products competitive in both domestic and international markets.

Women entrepreneurs said access to finance remains another major challenge. Political parties, they argued, need to advance agendas that improve financial inclusion, capacity-building and skills development for women-led businesses.

According to the World Bank, two thirds of Nepali women are engaged in unpaid household work, while limited childcare services and inadequate maternity policies force many to stay at home. As a result, fewer than one in three working-age women are in paid employment—a rate far below the average for lower-middle-income countries.

Women with limited education rarely access formal jobs, and Nepali girls use only 12 percent of their human capital potential, compared to 26 percent for boys.

Darshana Shrestha, president of the Federation of Women Entrepreneurs of Nepal, said that as women make up more than half of the population, political manifestos must place them at the centre of economic planning.

“We already have many good policies, but what is lacking is implementation,” said Shrestha. “Political parties must pay serious attention to how these policies are implemented.”

She said one-size-fits-all policies are discouraging and fail to address structural disadvantages.

“Women are not behind because they are incapable. There is a need to focus on women for a certain period through targeted programmes,” she said.

Shrestha also emphasised the importance of including gender-responsive programmes in emerging sectors such as information technology and innovative industries, to increase women’s economic participation.

With Nepal set to graduate from its least developed country status in November this year, Shrestha wants political actors to urgently address its implications.

“From a business perspective, once LDC graduation happens, preferential treatments will be withdrawn—our quotas and special facilities will be removed,” she said.

“Therefore, political parties must include plans for bilateral negotiations with importing countries in their manifestos.”

Ultimately, commitment and accountability matter more than rhetoric, Shrestha stressed.

“Whatever agendas parties put in their manifestos—economic, political or social—they must commit to implementing them through the full term,” she said. “This must not be a gimmick to win the election.”