NPC Functions

According to the Work Performance Rule (1991), the functions of the NPC are as follows:

  1. To advise GoN, ministries, and departments on the amendments to be made in periodic plans, programmes, and projects
  2. To advise GoN on conducting feasibility studies and initiation of master plans of large projects
  3. To advise GoN, ministries, and departments on accepting foreign aids
  4. To appraise project proposals

Government of Nepal (GoN) has also assigned following roles and responsibilities to NPC by an executive decision of June 28, 1993.

  1. To formulate basic development policies and prepare periodic development plans accordingly within the framework of a long-term development perspective.
  2. To explore internal and external resources along as well as indigenous and foreign technology and to recommend suggestions to GoN to accelerate the pace of development.
  3. To explore innovative approaches for sustainable development based on the economic situation of the country.
  4. To formulate annual programmes and assist GoN in their implementation.
  5. To advice GoN for the institutional development of monitoring & evaluation system, to monitor the implementation of programmes and projects according to plan target and outlay, and to carry out an imp`act evaluation of plans and projects.
  6. To provide guidelines, advice and suggestions to sectoral ministries, departments, other agencies and local bodies and assist them in the plans and projects formulation.
  7. To provide guidelines to collect data and to carry out action-oriented research necessary for the evaluation of new policies and for the refinement of the planning process.

Financial Administration Regulation (FAR) 1999 has assigned following roles and responsibilities to NPC:

  1. NPC has to provide guidelines on policy targets and priorities regarding formulation of budget for the coming fiscal year to the Ministry of Finance and all other line ministries before the issuance of circular on budget formulation.
  2. Formulate a policy framework for approval of the district level projects by the secretaries of the ministries.
  3. Approve Central level projects.
  4. Set policy targets on development programmes for the coming year within the month of December.
  5. Provide advice to GoN offices for accepting any kind of aid in kind or cash or reaching an agreement for foreign aid.

The National Planning Commission has been accomplishing various activities in order to carry out above mentioned roles and responsibilities. These activities are as follows:

  1. In addition to working as a national planning and programming body, the NPC has emerged as a leader and principle advisor in the economic development and economic affairs of the country. Almost all economic development and economic policies and programmes come into force either at the initiative of the Commission or on its advice or recommendations.
  2. NPC has emerged as a key coordinator in the management of economic development and general economic affairs of the country.
  3. NPC is also performing the role of an active and positive facilitator in the implementation of economic developmental policies and programmes. It has often assisted government organizations in solving challenges/problems faced in economic policy and programme implementation.
  4. The NPC has played the role of a pioneer in policy reforms. It has successfully pioneered the formulation and implementation of economic liberalization and other reform programmes.
  5. The Commission is working as the central level institution for monitoring and evaluation of economic development of the country.
  6. The Commission is a platform for exchange, dissemination, discussion and consultation in respect to economic affairs and development of the country. The meetings held in the offices of Vice-chairman and members of the Commission are important inputs for the development of the country.

The Commission also serves as an institution involved in analysis and finding solution to the problems of private sector in the country. The Policy Dialogue Committee under NPC is an effective forum for co-ordination of policy implementation and to address the various problems faced by the private sector

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