What did Nepal’s RSP pledge on February 19?

Rastriya Swatantra Party vowed to criminalize partisan loyalty among state-paid workers, end party “sister organizations” in state spaces, and promote civil service neutrality. The aim is to depoliticize decisions and procurement. For investors, fewer discretionary delays could lower risk premiums, improve project timelines, and support bankable deals if laws and enforcement follow.

How could this affect Canadian investors?

Cleaner rules can cut delay buffers in budgets, raise completion rates, and widen access to debt. Canadian developers, suppliers, and funds may find better pricing in hydropower and infrastructure if procurement and permits become transparent. Any exposure should phase in, with due diligence, risk insurance, and clear investment triggers tied to legal milestones and early enforcement.

Which signals show reforms are real?

Look for a bill defining punishable partisan conduct, cabinet directives removing sister bodies from ministries, and an updated civil service code. Seek procurement dashboards, published committee minutes, and early court rulings. Also track multilateral lending pipelines and power offtake agreements with India that can anchor finance as reforms progress from pledges into practice.

What risks remain even if reforms pass?

Implementation can be uneven across agencies. Enforcement might target opponents rather than practices, creating new uncertainties. Procurement could improve slower than hoped. Currency access and repatriation sit outside governance pledges. Maintain conservative assumptions, shorter tenors initially, strong guarantees, and thorough documentation aligned to civil service neutrality to manage downside while preserving optionality.

Global Market Insights

February 19: Nepal’s RSP Pledges Civil-Service Neutrality, Reform Mandate

ByDanny Kontos February 20, 2026

On February 19, Nepal governance reform took center stage as the Rastriya Swatantra Party (RSP) pledged to criminalize partisan loyalty for state-paid workers and push civil service neutrality. For Canadian investors, the pledge targets policy drift that inflates risk premiums and delays projects. If enacted, cleaner rules could support procurement integrity, steadier permits, and clearer timelines. We review what the proposal means, where the opportunities sit, and how to position portfolios exposed to foreign investment Nepal. We also flag key signals to watch before capital commits.