The government has once again intensified its efforts to mandate the use of domestic products in public entities. Although this initiative was first introduced a decade ago, it has largely remained ineffective.
In a cabinet meeting on Friday, the government approved the guideline for using domestic products in public entities—2024, making it mandatory for civil servants to prioritize Nepali products in office operations. The new directive requires government staff to exclusively wear uniforms made in Nepal and, wherever possible, use domestically produced office supplies.
This is not the first effort to enforce such provisions in public offices. A directive issued in 2015 aimed to promote domestic products but failed due to weak enforcement. Similarly, in February 2023, the Ministry of Industry, Commerce, and Supplies (MoICS) issued a circular urging government offices across all levels to prioritize Nepali products. However, the lack of compliance from public authorities has hindered meaningful progress.
The Public Procurement Regulations 2008 also include provisions to prioritize domestic goods, but these regulations have largely remained on paper. Public institutions have been reluctant to fully implement the law, citing various challenges. According to Ramila Bhandari, an information officer at MoICS, the newly endorsed guideline aligns with the Public Procurement Act, addressing previous inconsistencies that may have hampered its effectiveness.
The guideline mandates public entities to procure goods with at least 30% value addition generated within Nepal. It also prioritizes products from small and micro enterprises. To facilitate implementation, MoICS, in collaboration with the private sector, plans to develop a portal listing product specifications to aid procurement. Public authorities are now required to purchase stationeries, furniture, tools, and snacks from domestic companies. If local products are unavailable in sufficient quantities, at least 50% of the procurement must consist of domestic goods.
The government has set an ambitious target of increasing the manufacturing sector’s contribution to Nepal’s GDP from the current 5.9% to 15% by 2032. While private sector campaigns like ‘Make in Nepal’ and ‘Make in Nepal—Swadeshi’ have generated awareness, tangible progress has been limited.
The Confederation of Nepalese Industries (CNI) has welcomed the government’s move, viewing it as a significant boost to the ‘Make in Nepal’ campaign. The CNI believes that increasing the consumption and export of domestic products will strengthen Nepal’s industrial base and economic resilience.
Despite repeated attempts, the success of this initiative will depend on robust enforcement, collaboration with the private sector, and addressing the challenges of supply and demand in the local market.
