Prosperity Under Threat? Private Sector Leaders Warn Economic Goals Unreachable Without Stability and Respect

Leaders from Nepal’s three major private sector umbrella organizations have stated that policy stability, the dignity of entrepreneurs, and an investment-friendly environment are essential for the country's economic development and prosperity. Speaking at an economic summit organized by Baahrakhari Media, representatives from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI), and the Nepal Chamber of Commerce (NCC) emphasized the need for a strong partnership between the government and the private sector.

FNCCI President Chandra Prasad Dhakal noted that the private sector contributes over 80% to the national GDP and provides more than 85% of employment. While foreign exchange reserves remain strong, Dhakal pointed out that economic growth has not met expectations. He stressed the need for the 'Private Sector Protection and Promotion Plan' to build investor confidence and utilize Nepal's potential in hydropower and tourism. CNI President Birendra Raj Pandey projected that Nepal's economy could reach $100 billion by 2033 if a 6% annual growth rate is maintained. However, he criticized the current legal environment, specifically the 'arrest first, listen later' approach, which he claimed has created fear among investors. He called for lower customs duties on raw materials and a fully digital, 'paperless' government service system to reduce industrial costs. Additionally, NCC Vice President Deepak Malhotra highlighted the necessity of digital transformation and 5G technology, while also suggesting integrated tourism circuits with India to boost the economy and create domestic jobs for the youth.