A Risky Bureaucratic Overhaul

The government's initiative to remove around 60,000 employees working on contract, daily-wage and temporary bases has sparked a fresh debate over its approach to overhauling the bureaucracy. The proposal, currently under review at the Office of the Prime Minister and Council of Ministers, aims to replace a significant portion of the existing workforce with outsourced services. Government officials argue that a combination of technology, workload analysis and outsourcing could reduce costs, enhance productivity and shrink an already bloated bureaucracy. This proposal comes as the government is already pursuing another contentious reform. It has been attempting to reduce the size of the civil service by introducing compulsory retirement after 55 years of age or 30 years of service. That draft, now stalled at the Ministry of Law due to legal reservations, reflects the government's broader effort to reduce the state payroll. Together, the two initiatives point to an ambitious attempt to reshape Nepal's bureaucracy. The question is not whether reform is necessary but whether the government is pursuing the right path. The political risks are just as significant as the legal ones. Thousands of workers who have served government offices for years—some for nearly two decades—now face uncertainty. Even before the proposal has reached the Cabinet, contract employees have staged protests outside government offices, saying they will not silently accept a decision that threatens their livelihoods.