The private sector has drawn the serious attention of the government about current arrests and detentions of entrepreneurs and businesspersons, which has been discouraged them, according to the associations of private sector. Following the formation of a new government, the private sector had expected political stability, which could create conducive environment for investment, according to a joint statement issued by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC).
However, the ongoing arrests of the businesspeople has discouraged the private sector that contributes around 81 percent to the economy and 86 percent to employment, states the press release signed by FNCCI President Chandra Prasad Dhakal, CNI President Birendra Raj Pandey and NCC President Kamal Kumar Agrawal. The private sector is being affected, creating a situation that could have serious implications for the economy, employment, revenue, and infrastructure development, the statement added. “We strongly urge the government to adopt the principle of ‘listening before arresting’ the concerned parties only after establishing the facts.”
Entrepreneurs and businesspersons are always ready to cooperate in investigations and have appeared whenever called by authorities in the past too. However, their arrest under economic offense allegations has created anxiety and distress across the entire private sector, the private sector associations said. “Such actions not only affect individual entrepreneurs but also disrupt employment, supply chains, the banking sector, and the overall economic system, and the private sector once again draws attention to the serious consequences this may bring to the economy.”
The government has also recognized the importance of the private sector’s contribution and has recently begun involving it in policy and legal reforms, which we have taken positively, they claimed, adding, “However, the current actions have further shaken the confidence of the private sector at a time when policies and strategies for its protection and promotion have already been endorsed by the Council of Ministers.” The private sector has no objection to taking action against those found guilty after due process, but we urge the government to respect the constitutional right to dignified treatment and the principle that no one should be treated as guilty until proven so, according to the statement.
After nearly four years of economic slowdown, the private sector had high expectations from the newly elected government to adopt policies and business-friendly practices that would revive economic activity, it added. “However, such developments risk undermining investment growth and investor confidence even under a strong and stable government.”
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