The Sixteenth Periodic Plan of Nepal (2024/25 - 2028/29) (2081/82 - 2085/86)

Background

Nepal has pursued planned economic growth since 1956. Over the years, the country has carried out eleven five-year plans and three three-year plans.

The current Sixteenth Five-Year Plan (2081/82 - 2085/86) aims to address long-term challenges like poverty, economic inequality, and social exclusion. The primary goal of this plan is to promote economic growth, good governance, social justice, and national prosperity. 

Ultimately, the sixteenth plan seeks to upgrade Nepal from a least developed country to a developing nation.

Vision and Objectives of the Sixteenth Five-Year Plan

The Sixteenth Plan's vision is centred around the tagline "Good Governance, Social Justice, and Prosperity." 

The primary goals include promoting good governance in the political, administrative, and judicial sectors. It also aims to remove structural barriers to development and provide social justice.

Strategies and Policies of the Sixteenth Plan

To achieve its vision and objectives, the plan outlines various strategies and policies:

1. Strengthening Economic Base: Developing primary and secondary sectors while ensuring stability in the service sector.

2. Developing Financial System: Expanding the tax base, improving financial accountability, and maintaining external sector stability.

3. Utilizing Resources Efficiently: Increasing production and creating employment by using financial resources effectively.

4. Improving Supply Systems: Ensuring reliable, timely, high-quality, and cost-effective supply systems for increasing productivity.

5. Human Resource Development: Producing skilled workforce based on market demand and utilizing demographic benefits.

6. Economic Growth Target: Achieving 7.3% annual economic growth, increasing per capita income to $2,351, reducing poverty to 12%, and keeping inflation at 5%.

7. Improving Human Development Index (HDI): Raising HDI from 0.601 to 0.650 and reducing economic and environmental risks.

Key Development Targets of the Sixteenth Plan

The plan has set ambitious targets in various sectors:

Source: National Planning Commission, Sixteenth Periodic Plan (2081/82 - 2085/86)

Long-Term Vision and Strategies

The long-term vision "Prosperous Nepal, Happy Nepali" aims to create a wealthy, educated, and healthy population with equal opportunities and high living standards. The national goals include prosperity and happiness, supported by:

• Quality infrastructure and stable production

• Fair income distribution and inclusive democracy

• A balanced environment and sustainable development

To achieve these, the government has identified several long-term strategies:

1. Enhancing National & International Connectivity: Developing modern and inclusive infrastructure.

2. Ensuring Universal Access to Health & Education: Providing quality education and healthcare for all.

3. Boosting Production & Competitiveness: Increasing productivity in all economic sectors.

4. Expanding Social Security & Protection: Implementing sustainable social security programs.

5. Conserving Natural Resources: Protecting and restoring environmental assets.

6. Organizing Urbanization & Housing Development: Promoting planned urban expansion.

7. Strengthening Local & Provincial Economies: Empowering local and provincial governments for economic growth.

Priority Areas for Implementation

To ensure the success of this vision, the priority areas are as follows:

• Modern transportation and communication infrastructure

• High-quality human capital and entrepreneurship

• Hydropower development and green economy growth

• Tourism service expansion

• Organized urbanization and housing solutions

• Strengthening provincial and local economies

Conclusion

The Sixteenth Plan is a strategic roadmap for Nepal’s economic and social transformation. By implementing effective policies, achieving ambitious targets, and ensuring good governance and social justice, Nepal aims to achieve long-term prosperity and development. 

With a clear vision and well-defined goals, the country is moving forward on the path of economic growth and stability.