The main purpose of this study was to analyze the new public management reforms practiced by some of the developed countries and determine their applicability to Nepal. New Public Management (NPM) was defined as cost cutting and downsizing, introducing agencies, separation of purchaser and provider, decentralization of management
authority, performance management, introduction of market mechanisms, changes in personnel systems and quality and customer responsiveness. The term 'applicability' was determined by the perceived usefulness of NPM to stakeholders. The main focus of this research was to find an answer to the pertinent question - Is NPM applicable to Nepal? This research explored the political and bureaucratic environment inherent in Nepal, examined the influence of political and bureaucratic factors to the applicability of NPM and suggested recommendations for future reform in Nepal.