In Nepal, planned development can be seen only in some part of the cities via land pooling/land development. However, for the planned urbanization, phase wise development plan, infrastructure master plan need to be developed before infrastructure development. So, there is immense potential for urban planning and infrastructure development in the country. The need of investment for future development extends beyond fulfilling current deficit in infrastructure. It should capture infrastructure demand of the future population. Cities are considered as the engines of economic growth. In Nepal, about 35% of GDP is generated from the municipalities. Also, Nepal’s Sustainable Development Goals aspire to transform Nepal to middle income country by 2030. So, investment in urban infrastructures and enforcement of NUDS are major catalysts in the graduation effort.
National urban policy 2007 seeks to promote a balanced national urban structure, a clean, safe, and well-developed urban environment, poverty reduction; and effective urban management by capable local institutions. The creation of the Ministry of Urban Development and the Kathmandu Valley Development Authority in 2012, and the development of the National Urban Development Strategy (NUDS) in 2017, indicate a renewed policy attention by the government to urbanization. (NUDS is designed to complement National Urban Policy 2007, the primary document for urban development in Nepal). With the vision for next 15 years, NUDS has envisaged integrated urban development efforts.