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The Rastriya Swatantra Party (RSP) has secured a sweeping majority and is set to form a single-party government, likely on Friday, March 27. Balendra Shah is expected to lead the government, while Swarnim Wagle is likely to take charge of the Finance Ministry.

Wagle, educated in the United States and influenced by free-market principles, is expected to advocate for a liberal economic approach. However, the global trend is shifting toward protectionism. Donald Trump rose to power with the “Make America Great Again” slogan, while Narendra Modi promotes “Make in India.” Recent trade tensions initiated by the United States further highlight this shift.

In Nepal’s context, where markets are dominated by a limited number of brokers and price manipulation is prevalent, an unchecked free-market system may not serve national interests. Strong government intervention is necessary, and a mixed economic model remains more suitable. The private sector has shown limited interest in employment-generating large industries, making public investment essential. While the private sector prioritizes profit, the government must focus on public welfare and national interests. At the same time, state-owned enterprises should be granted autonomy and managed by competent professionals, free from political interference.

Nepal’s neighbors are increasingly focused on self-reliance, a path Nepal should also consider. Currently, a significant portion of government revenue comes from import taxes; a decline in imports would reduce revenue, inadvertently encouraging import-driven economic behavior. This trend is unsustainable.

Rising non-productive expenditure has forced the government to rely heavily on domestic and foreign loans. Addressing this requires structural reforms, including reducing administrative costs and improving governance efficiency. Without such changes, the commitments outlined in the party’s election manifesto may prove difficult to fulfill.

We are convinced that the present constitution cannot ensure political stability, national unity, or economic prosperity. Therefore, it should be abandoned, and a new constitution—establishing a Hindu kingdom and excluding the federal structure—should be introduced to address the existing political crisis.