KATHMANDU: The Nepal government has released a draft of its Second National Anti-Corruption Strategic Plan for the fiscal years 2025/26 to 2030/31. This five-year plan updates the first plan from 2012 and follows Nepal’s commitments under the United Nations Convention Against Corruption.

It focuses on strengthening laws, improving the use of technology, encouraging citizen participation, and addressing long-standing problems such as weak enforcement. A major new step is bringing private companies, cooperatives, and other businesses under anti-corruption oversight for the first time.

The Prime Minister’s Office has released the draft for public comments, aiming to build a cleaner and more transparent Nepal where everyone—from government officials to business owners—follows fair rules.

What is Nepal’s Second National Anti-Corruption Strategic Plan?

The plan is a five-year roadmap by the Nepal government to fight corruption more effectively. It covers the period from fiscal year 2025/26 to 2030/31. The Prime Minister’s Office has made the draft public so that people can provide feedback before it is finalized. It builds on the earlier plan but introduces new ideas because Nepal now has a federal system with three levels of government.

The main goal is to create a corruption-free country based on honesty and good governance. It includes new laws, stronger institutions, improved use of technology, greater citizen involvement, and better monitoring systems. One major highlight of the plan is that it will now address corruption in private businesses as well, not just in government offices. This ensures that everyone follows the same fair rules.

The plan outlines five main pillars, 25 policies, and 129 specific actions with clear deadlines and designated responsibilities. It aims to address existing weaknesses such as delays in court cases and ineffective oversight. Overall, it seeks to make public services faster, more transparent, and more reliable so that ordinary citizens feel that the government works for them.

Why did Nepal need this new anti-corruption plan now?

Nepal needed an updated plan because the first plan from 2012 did not fully achieve its goals even after 14 years. Although some laws were reformed and institutions strengthened, major issues such as high-level corruption, favoritism in contracts, and weak enforcement still remain.

The 2015 Constitution introduced a federal system, distributing power among federal, provincial, and local governments. This change made the old framework outdated. Peer reviews under the United Nations Convention Against Corruption in 2016 and 2022 also provided recommendations that were not fully implemented. Public dissatisfaction increased, especially after events such as the 2025 Gen Z protests against poor governance, inequality, and unemployment.

Advancements in technology have also changed the nature of corruption, including digital fraud and hidden financial transactions. The new plan addresses these gaps by introducing private-sector regulations, expanding digital tools, and ensuring coordination among all levels of government.

Without this update, corruption would continue to harm development, discourage honest investors, and reduce public trust in leadership. The government aims to demonstrate its commitment to clean governance so that Nepal can achieve fair growth and attract better international support.

What are the five main pillars of the plan?

The plan is based on five key pillars that function together as a strong foundation. The first pillar focuses on strengthening laws, policies, and institutions so that corruption can be prevented before it occurs.

The second pillar emphasizes the use of modern technology and raising awareness among citizens about their rights, enabling them to monitor government activities and promote accountability.

The third pillar ensures that corruption in all sectors—including private businesses—is treated as a punishable offense, while also allowing room to correct minor errors without immediate harsh penalties.

The fourth pillar focuses on developing skilled human resources for investigation, prosecution, and legal defense so that cases are handled efficiently and fairly.

The fifth pillar aims to improve coordination within Nepal and with international partners to address hidden financial flows and cross-border corruption.

Each pillar includes clear policies and contributes to the total of 129 actions, with timelines ranging from six months to five years. Responsible institutions, such as the Prime Minister’s Office and the CIAA, are clearly identified, ensuring accountability. This structure makes the plan practical rather than merely theoretical.

How does the plan bring private companies and cooperatives under anti-corruption rules?

This is one of the most significant changes in the new plan. Previously, anti-corruption laws mainly applied to government officials. Now, the plan includes private companies, cooperatives, banks, and other businesses under anti-corruption scrutiny. These entities can be investigated for activities such as bribery, fraudulent accounting, and misuse of public funds.

Under the third pillar, the plan proposes a new law that clearly defines corruption in the private sector, establishes penalties, and identifies the responsible bodies for investigation, prosecution, and adjudication. It also calls for amendments to existing laws such as the Company Act and Cooperative Act to align them with the new anti-corruption framework.

For instance, large share transactions exceeding Rs 1 million will require bank verification, and falsified financial records will be treated as criminal offenses. Private organizations will be required to adopt internal codes of conduct and allow regulatory oversight. The government believes this will reduce hidden transactions that damage the economy.

At the same time, the plan allows room for correcting unintentional errors, ensuring that businesses are not discouraged from operating. This approach promotes fairness by enabling honest businesses to grow while holding dishonest actors accountable.

What is the private sector’s response to the new anti-corruption plan?

Private sector organizations, including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Confederation of Nepalese Industries (CNI), have expressed concern over the proposal to bring private companies under corruption investigations.

They argue that Nepal already has multiple regulatory bodies overseeing business activities, and instead of expanding new enforcement powers, the government should strengthen existing institutions.

Industry leaders warn that excessive regulatory pressure could slow down business decision-making and discourage investment, especially in a sector that depends on speed and flexibility.

Some business representatives also fear that the inclusion of private firms under anti-corruption jurisdiction may create uncertainty and increase compliance burdens.

However, they have also clarified that they support transparency and the rule of law, as long as regulations do not become overly restrictive or discouraging for entrepreneurship.

What new laws and changes to old laws does the plan propose?

The plan proposes several legal reforms to close existing loopholes. It calls for a new comprehensive anti-corruption law that includes provisions for private-sector crimes, whistleblower protection, and asset recovery. Existing laws such as the Prevention of Corruption Act, CIAA Act, and Company Act will be revised to improve coordination and effectiveness.

Commission for the Investigation of Abuse of Authority. Photo: Bikram Rai/ Nepal News

For private transactions, the plan requires documentation such as bank statements for large property and share deals to prevent concealment of cash transactions. It also proposes laws addressing conflict of interest, digital evidence, and beneficial ownership, ensuring that real owners cannot hide behind shell companies.

Regulations governing election financing and political parties will be strengthened to prevent undisclosed funding. Additional rules for cooperatives and non-governmental organizations will aim to prevent misuse of public resources. Most new laws are expected to be enacted within two years, with full implementation within three years. These reforms will align Nepal’s legal framework with international standards and strengthen its global credibility.

Who is responsible for implementing the plan?

Responsibilities are clearly assigned to ensure effective implementation. The Prime Minister’s Office will lead the process through a steering committee composed of senior officials and experts, which will meet every four months. A working committee of joint secretaries from various ministries will manage day-to-day implementation and meet every three months.

Provincial and local governments will establish their own committees to support implementation. Key institutions such as the CIAA, National Vigilance Centre, judiciary, and law enforcement agencies have clearly defined roles. The private sector and civil society organizations are also expected to contribute.

Each action in the plan specifies a lead agency, supporting institutions, deadlines, and performance indicators. If financial resources are insufficient, the Ministry of Finance is responsible for allocating additional funds. Annual reports will be submitted to Parliament, allowing public oversight and ensuring accountability.

How will the government monitor the plan’s progress?

Monitoring mechanisms are integrated at all levels. The Prime Minister’s Office will conduct annual reviews and a comprehensive evaluation every two years. Provincial and local bodies will submit quarterly progress reports.

Progress will be measured using specific indicators, such as the number of laws enacted, the speed of case resolution, and public perception of corruption levels. Independent oversight bodies, parliamentary committees, and citizens will also play a role in evaluation.

Digital monitoring systems will track implementation in real time. If issues arise, the steering committee can intervene promptly. Citizens will have access to complaint mechanisms through hotlines and digital platforms, and institutions demonstrating strong performance may receive recognition. The plan is also linked to Nepal’s international reporting obligations, ensuring transparency at the global level.

What benefits can ordinary citizens expect from this plan?

Citizens can expect more efficient and transparent public services with reduced need for bribery. Public procurement processes will become more transparent, ensuring that public funds are used for genuine development projects. Honest businesses will benefit from fair competition.

Whistle-blowers will receive protection, enabling individuals to report corruption without fear. Increased use of digital services will reduce physical visits to government offices and limit opportunities for intermediaries to demand bribes.

In the long term, reduced corruption can lead to increased investment, job creation, improved healthcare, and a stronger economy. Educational initiatives will promote integrity among younger generations. Public trust in institutions is expected to improve, contributing to greater social stability and reduced dissatisfaction.

How does this plan align with Nepal’s international commitments?

Nepal became a party to the United Nations Convention Against Corruption in 2011 and has undergone peer reviews since then. The new plan incorporates recommendations from these reviews, including improvements in asset recovery, recognition of digital evidence, and regulation of the private sector.

It aligns with key areas of the convention, including prevention, criminalization, international cooperation, and asset recovery. The plan provides a structured approach for Nepal to demonstrate progress in its international obligations.

By strengthening legal and institutional frameworks, Nepal can enhance its global reputation, potentially attracting increased foreign investment and development assistance. The plan also proposes additional agreements with other countries to combat cross-border corruption effectively.

What distinguishes this plan from the first anti-corruption strategy?

The first plan, introduced in 2012, included five strategies and 106 activities but primarily focused on public sector corruption. It did not adequately address private-sector issues or technological advancements. Implementation was limited due to political interference and weak coordination.

The new plan addresses these shortcomings by introducing clear timelines, defined responsibilities, technological tools, and private-sector inclusion. It also emphasizes citizen engagement, risk-based monitoring, and corrective measures for minor violations.

Importantly, it fully incorporates Nepal’s federal structure, ensuring coordination among all levels of government. Overall, it is more comprehensive, measurable, and implementation-oriented.

What role can citizens and youth play?

Citizens are central to the success of the plan. They are encouraged to report corruption through secure channels, with assurances of protection for whistleblowers.

Youth will be engaged through educational programs and awareness campaigns. Citizens can participate in community monitoring initiatives and hold authorities accountable. Businesses are expected to adopt ethical practices and train employees accordingly.

Media and civil society organizations will play a crucial role in promoting transparency and highlighting both progress and shortcomings. Active citizen participation will strengthen accountability and encourage responsible governance.

What challenges could hinder implementation?

Several challenges may affect implementation, including limited political commitment, inadequate financial and human resources, and entrenched practices of favoritism and secrecy.

Private sector concerns about regulatory burden, delays in judicial processes, and gaps in technological infrastructure, especially in rural areas, may also pose difficulties. There is also a risk of misuse of anti-corruption measures for political purposes.

The plan addresses these risks through capacity building, public engagement, and continuous monitoring. Strong public demand for accountability will be essential to overcoming these challenges.

When can results be expected?

Initial outcomes, such as improved transparency measures and digital complaint systems, may be visible within the first year. Legislative reforms and institutional strengthening are expected within two to three years.

More substantial impacts, including reduced corruption levels and increased public trust, are likely to emerge within four to five years. Regular reporting will allow citizens to track progress and identify challenges early.

With sustained political commitment and adequate resources, citizens may begin to experience improvements in public services within a few years.

How will technology be used to combat corruption?

The plan emphasizes the use of technology as a key tool in combating corruption. It proposes digital procurement systems, acceptance of electronic evidence in courts, and automated systems to detect suspicious transactions.

Citizens will be able to file and track complaints through digital platforms. Advanced technologies such as blockchain may be explored to prevent document fraud. Officials will receive training to ensure proper use of these tools.

Private entities will also be required to maintain transparent digital records. Strong cybersecurity measures will be implemented to protect systems from misuse.

Will this plan make Nepal corruption-free?

The plan has strong potential if effectively implemented. It provides a detailed framework, assigns clear responsibilities, and addresses both traditional and emerging forms of corruption.

Past efforts were limited by weak implementation, but this plan incorporates stronger monitoring and public participation. Extending regulations to the private sector addresses a critical gap.

While it may not eliminate corruption entirely, consistent progress over the five-year period can significantly improve governance. The success of the plan will depend on collective efforts from government institutions, the private sector, and citizens.