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Kathmandu, July 24: While nearly 2,000 Nepali youths head abroad for work every day, the government’s flagship program meant to foster youth self-employment within the nation has remained leaderless for nearly a year.

The Youth and Small Entrepreneur Self-Employment Fund, established to help unemployed youth start businesses in Nepal, has been without a vice-chairperson—its executive head—since August 2024. Although the Minister for Youth and Sports serves as the chair, the fund cannot function effectively without the executive vice-chair, a post crucial for loan disbursement and daily operations.

Due to this leadership vacuum, loans meant to promote self-employment have been halted, impeding efforts to curb unemployment. This has raised serious questions about the government’s commitment to generating domestic employment opportunities for youth.

The Ministry of Youth and Sports had recommended three candidates—Lokendra Bista (Khotang), Anil Raj Paudel (Chitwan), and Dr. Damodar Bhusal (Arghakhanchi)—for the post five months ago. However, the Cabinet has failed to make an appointment. Ministry spokesperson Subash Chandra Shivakoti confirmed that the names were forwarded to the Council of Ministers back in February.

Youth Minister Tejulal Chaudhary stated that he had informed top officials including the Prime Minister, Finance Minister Bishnu Prasad Paudel, Home Minister Ramesh Lekhak, and Foreign Minister Dr. Arzu Rana Deuba, but no decision has been made yet.

Executive Director of the Fund, Bishwo Mohan Adhikari, said the government had tasked them with creating 11,000 self-employed youths annually. However, in the absence of a vice-chairperson, no loans have been issued in the fiscal year 2081/82. An estimated Rs 2 billion in planned loans remains unutilized, and even administrative and monitoring work has been affected.

Since its establishment 15 years ago, the Fund has disbursed Rs 14.13 billion in self-employment loans to 109,339 youths through 2,600 cooperatives and 20 banks. Loans are provided at 5.5% interest to financial institutions, which then lend to individuals at 8%. Loans are collateral-free and available in all districts except Manang and Mustang.

Despite a provision allowing up to Rs 500,000 per person, most recipients receive only Rs 150,000–200,000 due to budget constraints. Of the roughly 500,000 youths entering the labor market annually, the Fund aims to empower at least 100,000 through entrepreneurship.

To date, Rs 3.82 billion has been secured from banks to finance youth loans, 60% of which must go into production sectors, and 40% into services. The Fund has also provided orientation to over 42,500 youths and skills training to over 14,000. As of March 2025, Rs 168.9 million has been disbursed in interest subsidies, and Rs 800 million earned in interest revenue. Over 81,000 recipients have received insurance coverage.

Moreover, Rs 145 million in loans has been provided to nearly 29,000 individuals this fiscal year alone. The Fund has received Rs 82.5 million in insurance compensation from 1,351 beneficiaries.

The lack of leadership is now the biggest bottleneck for a program with vast potential to anchor Nepal’s youth and economy.

People’s News Monitoring Service