Finance Minister Swarnim Wagle took office on March 27, 2026, pledging to prioritise economic reform, create a more business-friendly environment and pursue legal and regulatory changes.

While his first 100 days have seen the launch of several reforms, economists say they have yet to deliver any tangible improvement to the economy or restore private sector confidence.

Backed by a near two-thirds majority following an election shaped by the Gen Z movement of last September, the government entered office with high expectations of reviving the economy. Much of that responsibility rested with Wagle’s ministry.

Economists say the administration has so far fallen short of those expectations.

According to them, the government’s first 100 days have failed to improve either capital expenditure or revenue collection. Despite commercial banks and financial institutions holding trillions of rupees in excess liquidity, demand for loans remains weak. The stock market has continued to decline, the real estate sector remains sluggish, and overall business confidence has shown little sign of recovery.

Minister Wagle, however, maintains that the government has made significant progress in improving the economy.

The government has begun implementing reforms aimed at improving public service delivery. Point 32 of its 100-point governance reform plan pledged to allow citizens requiring in-person government services to choose appointment dates and times, with services to be delivered through designated citizen service centres or cooperative institutions.

Economist Dilli Raj Khanal describes the government’s overall performance as disappointing.

“The Rastriya Swatantra Party’s election manifesto and the government’s 100-point governance reform plan created enormous expectations,” he said. “But there has been no visible improvement in private sector confidence, capital expenditure has not improved, excess liquidity in banks remains unchanged, and the stock market continues to weaken.

“Industrialists and businesspeople remain uncertain. Neither foreign nor domestic investment has increased. There has been no fundamental improvement in the economy during the government’s first 100 days.”

Khanal said the government should use its 100-day review to identify shortcomings and improve its performance.

At the same time, he described recent efforts to improve public service delivery and strengthen anti-corruption measures as positive developments.

“The government has abolished unnecessary ministries to reduce expenditure. It has repealed or amended overlapping and obstructive laws. Legal reforms to attract investment and improve governance are positive steps,” he said.

“But the real test lies in implementation. The government must now focus on delivering results.”

Prakash Kumar Shrestha, former vice-chairperson of the National Planning Commission, said the economy remains largely where it was when this government took office.

“In terms of investment and economic activity, the economy is in almost the same position as when this government assumed office,” Shrestha said.

“Imports have started to increase, which may indicate improving market demand. But we need to examine whether the increase is driven by consumer goods or productive capital goods such as machinery.”

He said bank lending remains stagnant, the stock market continues to decline, capital expenditure and revenue collection remain weak, the real estate market has yet to recover, and private sector confidence has not improved.

Nevertheless, Shrestha noted that although the economy has not improved as expected, it has also not deteriorated further.

As part of efforts to inject liquidity into the economy more quickly, the government launched a pilot programme in the third week of April under which employees of the Ministry of Finance and the Office of the Financial Comptroller General received salaries and allowances every 15 days instead of once a month.

The pilot lasted only one month, covering two salary payments, after which both offices returned to the monthly payment system. However, the government plans to expand the fortnightly salary system to many federal government offices from mid-July.

The government had also pledged to begin refunding deposits to victims of troubled cooperatives within its first 100 days.

That process has now begun.

According to Dilli Ram Acharya, chairperson of the Troubled Cooperatives Management Committee, the committee has refunded a total of Rs44.348 million to 1,895 depositors from several such cooperatives. He said remaining depositors would receive refunds in phases.

The stock market has also reflected weak investor confidence.

Since the government took office, the Nepal Stock Exchange has traded for 25 days. The benchmark index rose on only seven trading days and fell on the remaining 18.

The Nepse index has fallen by more than 100 points, from 2,755 to 2,653 as of Friday.

After nearly two months of delay, the government appointed the chairperson of the Securities Board of Nepal last week. It has also invited applications for the position of chairperson of the Nepal Insurance Authority.

Weak private sector confidence has left banks and financial institutions holding around Rs1.2 trillion in loanable funds. Although government revenue has increased by a single-digit percentage, collections remain well below target, while capital expenditure continues to lag.

Although the budget for the new fiscal year, 2026-27, sought to provide relief to the middle class, critics say it largely overlooked lower-income households.

The introduction of value-added tax (VAT) on electricity, along with new taxes on education and healthcare, has also drawn criticism. Economists argue that while the government raised the income tax threshold to benefit the middle class, it is effectively recovering much of that relief through indirect taxation.

Wagle also became embroiled in controversy over changes to tax rates.

After presenting the Finance Bill in Parliament on May 29, the government later revised more than half a dozen tax provisions, prompting criticism over the budget-making process.

Economist Nar Bahadur Thapa, also former executive director of the Nepal Rastra Bank, offered a more positive assessment, saying the government had made a promising start.

He identified the government’s emphasis on good governance as its most significant achievement of the first 100 days.

“The government has taken a firm approach to governance and is amending laws where necessary,” he said.

Thapa also cited efforts to promote the digital economy as a major reform.

He said placing responsibility for the digital economy directly under the Prime Minister’s Office demonstrated that it had become a national priority. Through digital transformation, he argued, the government aims to strengthen governance while creating opportunities for young Nepalis at home and abroad.

“The government has also announced plans to build hydropower transmission lines under a public-private partnership (PPP) model. That is a very positive initiative,” Thapa said.

“It also plans to accelerate the completion of projects that have remained stalled for years. This will bring two major benefits: long-delayed infrastructure projects will finally be completed, and citizens will gain access to better public services through improved infrastructure.”

Thapa said Nepal’s financial market had long been plagued by regulatory distortions.

“For years, the market operated with serious irregularities. The same individuals were allowed to hold licences for banks, insurance companies, stock brokerage firms, merchant banks and other businesses simultaneously,” he said. “That concentration of power created widespread market distortions through conflicts of interest.”

According to Thapa, the government is now trying to correct those structural problems, even if that means causing short-term instability.

“The budget contains several policies aimed at improving the economy. Once those measures are implemented, the economy should gradually recover.”

Despite such optimism, many commitments under the government’s 100-point governance plan remain unfulfilled.

Point 11 pledged to establish a high-level task force comprising representatives from the Office of the Prime Minister and Council of Ministers; the Ministry of Finance; the Ministry of Industry, Commerce and Supplies; and the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration to review unproductive government boards, committees, projects and overlapping institutions. The task force was expected to submit recommendations within one month. Even after 100 days, it has not been formed.

Point 45 tasked Nepal Rastra Bank with establishing an integrated digital asset registry covering bank accounts, digital wallets, shareholdings and other financial activities, along with a risk-based monitoring system to detect suspicious transactions. The initiative has yet to begin.

Point 53 aimed to simplify and speed up business registration by strengthening the Department of Industry’s One-Stop Service Centre. According to Sunita Nepal, spokesperson for the Investment Board Nepal, each relevant ministry and department assigned a focal person and a one-stop service was established within the board. However, she said the system has failed to progress because digital infrastructure was disrupted during the Gen Z movement, preventing electronic service delivery.

Point 54 required all national pride projects and the Investment Board Nepal projects to adopt clearly defined investment models within 90 days. Although a study committee has submitted its report, the process remains incomplete.

Point 56 promised a fast-track system allowing startups to complete registration within two days. The commitment has yet to be implemented.

One area that has seen progress concerns lending to small and medium-sized enterprises (SMEs), agriculture and the information technology sector. The governance plan required the central bank to reduce the regulatory risk weighting on loans in these sectors within 30 days. Acting on the government’s direction, the central bank has lowered the risk weight assigned to SME lending.

Point 58 proposed integrating business registration, tax registration, bank account opening and other mandatory approvals into a single digital platform within 45 days. That target has not been met.

Point 63 directed the Ministry of Finance and the Nepal Rastra Bank to introduce relief and recovery packages for businesses affected during the Gen Z movement. The government has since introduced tax relief, while Nepal Rastra Bank has announced several financial support measures.

Point 78 proposed transferring unclaimed funds from dormant bank and financial institution accounts inactive for at least 10 years to the state treasury after completing legal procedures. The proposal proved controversial and has not moved forward.

Point 79 required large businesses to adopt electronic billing within a month to improve transparency and efficiency in the revenue system. Experts say implementation has been slow and far from effective.

Point 81 committed the government to consolidating more than 139 government funds with overlapping mandates and redirecting resources to higher-return projects within 60 days. That commitment also remains unfulfilled.