The government of Nepal has reduced the number of federal ministries from 25 to 18, achieving an estimated annual saving of Rs 20 billion. Minister of Education and Sports Sasmit Pokharel announced the restructuring, which is part of a 100-point governance reform agenda implemented since Prime Minister Balendra Shah took office in March 2026.
Beyond consolidating ministries, the administration is abolishing 31 government agencies, merging six, and restructuring others to eliminate unnecessary costs. Additional measures include dissolving political unions and expanding digital public services, such as online banking guarantees and automated business registration systems, to enhance efficiency.
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