Nepal's Business Giants Issue Stark Warning: Powerful 2/3 Majority Gov Must End Policy Instability Now!

Chandra Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged the government—which holds nearly a two-thirds majority—to foster an investment-friendly environment through clear and stable policies. Speaking at a discussion on the upcoming budget in Kathmandu, Dhakal noted that the private sector and investors have long suffered due to policy inconsistency. He stated that if the government maintains stable policies, Nepal will see a significant influx of investment. Recalling past failures in implementing government commitments, he emphasized that there should be no further delays in execution.

Dhakal suggested that the upcoming budget should incorporate recommendations from the High-Level Economic Reform Commission, focusing on import substitution, domestic production, and private sector participation in infrastructure. He pointed out that while the government often promises private sector involvement, practical implementation remains weak, with many projects stalled despite official approval. FNCCI has already established a 10 billion NPR investment company to prove that domestic capital can fund large-scale projects.

Adding to the discussion, Virendra Raj Pandey, President of the Confederation of Nepalese Industries (CNI), called for simplifying the tax system and implementing a one-stop tax collection mechanism. He also raised concerns about local governments imposing taxes that harm businesses. Similarly, Deepak Malhotra, Vice President of the Nepal Chamber of Commerce, stressed that the government's ambitious goals—such as reaching a 100 trillion economy and a $3,000 per capita income—can only be achieved by working closely with the private sector and ensuring policy stability, particularly in sectors like agriculture and tourism.