Party Ideology and Policies
In 1956, Nepali Congress formally adopted democratic socialism as its principal ideology. Since then, primarily guided by the thoughts of the late B.P. Koirala, the party has acquired a distinct identity, and it continues to work for the consolidation and stabilization of democracy and a society based on the value of pluralism. The party is conscious of its ongoing struggle against the destabilizing forces of extreme left and extreme right.

In the new economic situation of the world, seen during the 1990s and now the new century, the party is engaged, as other social democrats around the world, in evolving a strategy for national growth and development that would integrate the beneficial aspects of economic liberalization and globalization with upliftment of the most needy.

Nepali Congress believes in plural democracy with liberal values. It is firmely committed to human rights and rule of law. It believes that sovereignty lies with the people and they are the source of state power. It is against the use of violence when peaceful means for the propagation of one's ideas and programmes are are available. Like the European social democrats, Ideologically Nepali Congress represents a centrist philosophy. It is committed to economic growth with social justice and equity. The party believes in the strong state role in the social sector, poverty reduction, environment protection and building up infrastructure. It is committed to promote private investment in trade, industry, tourism and other economic sectors. It also believes in the importance of cooperative sector to protect the interest of small producers and units, wherever they are feasible. The NC government is committed to continue the process of economic liberalization. At the same time, it is also committed to a parallel strategy to prioritize allocation of funds, and has undertaken administrative initiatives for policies and programmes related to education, health and other basic human needs, and for the development of such infrastructure, skills and technologies as would empower the vast number of the impoverished and disadvantaged sections of society, and create opportunities for their economic and social upliftment. It believes in decentralization of power and devolution of authority to the lower level. It has always believed in inclusive democracy and empowerment of communities which have remained historically neglected.

Until recently, the party strongly supported the institution of constitutional monarchy for the country, together with parliamentary democracy. But after the royal takeover of 1 February 2004, its attitude towards monarchy started to change. Since the present monarch showed no sign of his commitment to popular sovereignty, the Eleventh Party General Convention passed a resolution which stated that it is no longer committed to constitutional monarchy and will remain open on the issue.

In foreign policy, Nepali Congress is committed for close ties of friendship and co-operation with Nepal's immediate neighbours - India and China - and advocates productive interaction with all SAARC nations. The party is against the use of any part of the country by any person or organization in activities prejudicial to the sovereignty, independence and territorial integrity of the neighbouring and friendly countries, and, in its turn, expects the same attitude towards Nepal from the international communities. The party also believes in the principles of the United Nations as guiding elements for the regulation of international relations. NC wants to further strengthen Nepal's role, as a democratic nation, in fostering greater understanding and friendship with all nations of the world. NC also is grateful to those nations who have contributed in Nepal's socio-economic development efforts.