FNCCI president urges for accelerated economic reforms amidst market recovery

KATHMANDU: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged stakeholders to seize the opportunity presented by the recent improvements in economic activities and market dynamics to accelerate economic reforms.

Speaking at an interaction program organized by FNCCI in Kathmandu today, President Dhakal emphasized that the economy is showing signs of gradual recovery, and this momentum should be capitalized on to foster further economic stability. He noted that the market’s positive trends, supported by increased investor confidence, are an encouraging sign for both domestic and foreign investments. Dhakal called for enhanced collaboration between the government and the private sector to attract more investors.

President Dhakal pointed out that the stock market is experiencing renewed enthusiasm, real estate transactions are gradually picking up, and the demand for credit is improving. He stressed the need to keep this momentum going to ensure a vibrant and dynamic market. He also highlighted the favorable conditions for investors, citing the recent increase in tourist arrivals, record-high remittance inflows, and a stable balance of payments due to sufficient foreign currency reserves.

Welcoming the ongoing efforts to operationalize the two international airports in Pokhara and Bhairahawa, Dhakal also drew attention to the need to eliminate the disparity in fees between domestic and international tourists and to make air travel more affordable and accessible.

Dhakal mentioned that FNCCI is actively supporting the upcoming Nepal-Thailand Business Forum, which will be organized during the Prime Minister’s forthcoming visit to Thailand, as part of efforts to attract foreign investment. He added that FNCCI has previously organized similar investment promotion programs twice in India and four times in China and Dubai. The FNCCI’s Foreign Investment Assistance Cell is also providing support to investors in response to their demands.

Expressing his gratitude to the Finance Minister, Dhakal acknowledged the inclusion of a proposal to establish an Economic Reform Commission in the government’s action plan. He highlighted FNCCI’s ongoing advocacy for such a commission, which would coordinate between the private sector, government agencies, and other stakeholders to address economic challenges.

President Dhakal also urged the government not to make any changes to the concessions provided to the productive sector for at least the next ten years. He called for the provision of electricity to industries at affordable rates, treating it as a raw material, and allowing direct electricity purchases by paying wheeling charges.

Dhakal announced the establishment of Nepal Development Company, initiated by FNCCI, to support small investors who have limited investment opportunities. The company aims to invest in startups, hydropower projects, and the expansion of infrastructure and public enterprises.

He further cautioned against creating laws that would discourage the private sector, emphasizing that there are nearly 18 regulatory bodies overseeing the private sector, making it unnecessary to bring them under the jurisdiction of the Commission for the Investigation of Abuse of Authority (CIAA). He advocated for private sector-friendly legal frameworks and the inclusion of the private sector in policy-making processes as essential steps toward achieving economic prosperity.