Nepal Government to Prioritize Domestic Goods and Services in Public Procurement

The Government of Nepal has decided to make the use of domestically produced goods and services a priority in public procurement. Following Prime Minister Balendra Shah’s direction, the Office of the Prime Minister and Council of Ministers has instructed federal ministries, provincial and local governments, and Nepali diplomatic missions abroad to prioritize domestic products when making purchases. Under the new arrangement, government agencies will be required to choose Nepali products for items such as stationery, furniture, construction materials and food products. The directive also encourages the use of Nepali handicrafts at government meetings, special events and as official gifts. Public entities will also be required to clearly incorporate provisions prioritizing domestic products when preparing tender documents. The government expects the policy to create a stronger market for local producers, promote entrepreneurship and employment, reduce import dependence and strengthen the domestic economy. Regular monitoring and quarterly inspections have also been planned to ensure effective implementation.