Kathmandu, May 2 (PTI) Nepal President Ramchandra Paudel on Friday presented the government's policies and programmes for the fiscal year 2025-26, announcing plans to prioritise green energy, promote digital banking, green industrialisation and focus on good governance and rapid economic development.

On the energy front, the president said the government will adopt a suitable financial model to develop multipurpose and reservoir-based hydropower projects, with a focus on addressing power demands during the dry season and ensuring energy security.

On tax reforms, he said the government will undertake a structural overhaul of the tax system aimed at industrialisation, investment promotion, and enhancing the economy’s competitiveness.

“A taxpayer-friendly revenue system will be developed using improved tax administration and greater use of information technology,” he said.

The Himalayan nation's sovereignty and national interests will be upheld through balanced international relations, regional cooperation, and economic diplomacy, reads the policy and programmes presented by the government.

The government also plans to mobilise domestic capital to develop hydropower projects, it said.

Under the “People’s Hydropower Programme,” self-generated capital will be mobilised for the construction of hydropower projects, while efforts will be made to channel remittances from Nepali citizens working abroad into these projects.

On the environmental front, President Paudel said Euro 6 emission standards will be introduced for vehicles to curb air pollution.

“Watershed management, land restoration, and improved human-wildlife conflict response through insurance-based relief will be prioritised,” he added.

"Nepal will be positioned as a hub for natural, cultural, and spiritual tourism, with initiatives such as yoga and meditation to boost employment and income," reads the policy document.

"Digital infrastructure will be expanded, cybersecurity ensured, and public services integrated into the Citizen App for efficient service delivery," it stated.

To modernise financial transactions, the government plans to establish a digital bank and promote cashless financial services.

“Digital infrastructure will be expanded, and policies and laws will be revised to facilitate the development of a digital economy,” said the president.

He also highlighted plans to extend faceless public services and provide maximum services through the Nagarik App. PTI SBP GRS GRS

Green energy prioritisation and digital banking expansion to modernise transactions and mobilise domestic finance for hydropower. The fiscal 2025-26 policy roadmap prioritises green energy and digital banking, advancing reservoir-based hydropower through mobilisation of domestic capital and remittances under the People's Hydropower Programme, while pursuing structural tax reform to support industrialisation. It proposes a taxpayer-friendly revenue system with enhanced IT-driven administration, sets Euro 6 vehicle emission standards, and expands digital infrastructure, cybersecurity, and Citizen App integration to deliver faceless public services and promote a cashless economy.