Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has stated that the private sector should lead economic prosperity and development.
President Dhakal expressed this view while speaking at the inauguration of the FNCCI's 59th Annual General Meeting and Industry Commerce Day 2081 held today.
Dhakal stated that the primary priority should be ensured that the private sector can work freely to achieve the government's stated goal of prosperity. He emphasised the need for political parties to have a common understanding regarding the economy, development and prosperity.
He said, "The economy should not be disrupted by any ideology. It should be placed above everything else. Prosperity in the country means everyone getting opportunities. For that, investment in money, intellect, wisdom and skills is necessary. Even before that, financial investment is essential, which will later create demand for labour and skills when production starts."
Mentioning that the economy contracted in the past due to the government adopting more caution than necessary, he opined that the policy decisions made at that time to control market demand have still not allowed the market to become dynamic.
President Dhakal emphasised that the government and private sector should work towards creating an environment conducive to doing something in the country while seeking favourability in adversity. "I want to spread hope, not despair. The situation is improving. However, the current improvement is not enough to fulfil the aspirations of our youth. As long as we cannot create dignified and high-wage employment opportunities within the country, despair cannot be turned into hope. The widespread despair right now is a result of that," he stated.
Mentioning his experience from four conferences held in India, China and the UAE in the last two years, Dhakal stated that foreign investors are interested in coming to Nepal. He added that foreign investment can be increased if meaningful efforts are made.
Pointing out that the new global economic environment has also indicated potential benefits for Nepal, President Dhakal said that compared to Nepal's competitor countries, America has set a very low tariff rate for Nepal, which has further strengthened the possibility of increased investment in Nepal, and Nepal should take advantage of this.
Informing that the Nepal Development Company has been established under FNCCI's initiative for the mobilisation of domestic capital, along with advocacy to boost the morale of domestic investors, President Dhakal stated that this has opened investment opportunities in large projects by aggregating small capital scattered across all 77 districts of the country and abroad.
Mentioning that the recent policy reforms have shown positive signs, he emphasised the need to bring the policies and programmes and the budget of the current fiscal year as a starting point for further improvement.
Stating that the government's recent steps at FNCCI's request, such as the formation of a high-level commission to prepare the groundwork for a new phase of economic reform, amendments to around 35 laws, preparation of a draft for bilateral investment agreements, and fully online certification of origin, are positive, he said that this initiative by the government will revitalise the economy.
However, stating that the private sector, which has created 86% of the employment in the country, contributes to more than 80% of direct and indirect revenue, and accounts for 81% of the investment, is still not being given due respect, he drew the government's attention to the issues of security, respect and order of precedence for the private sector.
"We have raised the issue of security. We have raised the issue of respect. We have raised the issue of order of precedence. The state does not have any investment in this. Only goodwill is needed," he said.
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