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New Public Management (NPM) has become a dominant model of administrative reforms since 1980s. The basic principle of NPM is based on economic and managerial theories. Application of economic theories in the public sector allows to introduce competition in the public service delivery system, to contract out functions of the government, and to privatize state owned agencies. Application of managerial theories in the public sector gives an opportunity to provide flexibility in managing the functions of government where public managers have been given more autonomy to manage their jobs. Primarily, NPM based reforms applied in developed nations namely Britain, New Zealand, Australia and USA. Since 1990s NPM has been applied in developing countries too. In Nepal, various efforts for reforming public administration have taken place since early 1960s. However, reform efforts after 1990 have introduced some reforms ideas related to the NPM model for making pubic sector more effective and result oriented. Among them redefining the role of the State, privatization of State owned enterprise, delegation of administrative power and authority, procedural simplification, application of NPM work culture, and use of citizen charter are the major reform components. However, NPM based reform initiatives have not been effective to bring positive changes in Nepalese public administration as per their objectives. The study mainly find outs the policy process of reform, political situation of the country, path dependency characteristics and bureaucratic behaviour that exist in the Nepalese public administration have affected the application of NPM oriented reforms.