KATHMANDU, June 26: Three months into Prime Minister Balendra Shah's tenure, the government has made some progress on governance reforms. However, many of the 100 reform initiatives it pledged to implement remain unfinished.
While nearly half of those commitments are still pending, the government has shown some encouraging signs on good governance. At the same time, several of its decisions have sparked criticism.
Civil Servants on Edge
The civil service has experienced the biggest upheaval since Shah took office. A series of government decisions has unsettled bureaucrats. Yet the long awaited Federal Civil Service Act, under discussion for the past eight years, has still not been introduced. The government says it is continuing work on the legislation.
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The draft of the proposed law has already triggered widespread concern among civil servants. It remains unclear whether the law will be introduced through an ordinance or follow the regular parliamentary process, but the contents of the draft alone have created significant anxiety within the bureaucracy.
The concern grew after the Ministry of Land Management, Cooperatives, Federal Affairs and General Administration forwarded a draft bill to the Ministry of Law, Justice and Parliamentary Affairs. The proposal would require the compulsory retirement of civil servants who have reached the age of 55 or completed 30 years of service.
Under the draft, this would be a one time measure. If Parliament passes the bill, all civil servants meeting either criterion would be required to retire. After that, the retirement age for civil servants would be raised to 60.
"The proposal is to retire between 10,000 and 15,000 employees under the one time provision of age 55 or 30 years of service, while increasing the retirement age for the remaining, younger workforce to 60," a source at the ministry said.
According to the source, around 13,000 civil servants would be affected if the proposal becomes law. The plan reflects the new government's intention to replace an older generation of bureaucrats with younger officials.
The uncertainty has already prompted many government employees to resign. Since the draft would effectively cap pension eligibility at 30 years of service, employees who have already completed more than 30 years have begun stepping down before the law takes effect.
Others have resigned over dissatisfaction with transfer decisions. In the past nine days alone, 54 civil servants have submitted their resignations.
Trade Union Registrations Revoked
The government has also cancelled the registration of 12 employee trade unions, eight representing civil servants and four representing health workers. The decision was taken by the Department of Labour and Occupational Safety under the Ministry of Labour, Employment and Social Security.
According to the department, the revoked organizations include the Nepal Civil Servants Organization, Nepal Civil Servants Union, Nepal National Civil Servants Organization, Nepal Madhesi Civil Servants Forum, Unified Government Employees Organization Nepal and Independent National Servants Employees Organization Nepal.
Among health sector unions affected are the Nepal Health Workers Association, Madhesi Health Workers Forum Nepal, Nepal Health Workers Union, Health Workers Union Nepal and National Health Workers Association.
At the same time, the government has attempted to ease discontent by increasing civil servants' salaries. Although the existing Civil Service Act requires a salary review every three years, the latest increase was announced through the national budget. Under the revised pay structure, the minimum monthly salary for civil servants will rise to Rs 40,000, while the maximum salary will reach Rs 100,000.
