FNCCI president calls for private sector-led economic growth

KATHMANDU: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has urged that the private sector take the lead in steering Nepal toward economic prosperity and development. Speaking at the opening of the FNCCI’s 59th Annual General Assembly and Industry-Commerce Day 2081, Dhakal emphasized the need for an unobstructed environment for businesses to thrive, aligning with the government’s vision of national prosperity.

In a passionate address, Dhakal called for a unified economic agenda transcending political ideologies. “The economy must remain paramount, unaffected by any ‘ism.’ Prosperity means opportunities for all, and that begins with financial investment, followed by the demand for skills and labor,” he said. His remarks come as Nepal’s economy shows signs of recovery, with inflation cooling to 3.75% and exports surging 57.2% in the first eight months of FY 2024/25, per a recent Nepal Rastra Bank report.

Dhakal critiqued past government policies, noting that overly cautious measures had stifled economic activity, leaving the market sluggish even today. He urged collaboration between the state and private sector to foster a conducive environment for growth. “I want to inspire hope, not despair. Progress is underway, but it’s not enough to fulfill our youth’s ambitions,” he said, linking widespread pessimism to the lack of well-paying, dignified jobs domestically.

Highlighting Nepal’s potential to attract foreign investment, Dhakal cited successful FNCCI-led conferences in India, China, and the UAE over the past two years, which revealed strong interest from overseas investors. He pointed to favorable global conditions, including the United States’ low customs duties on Nepali goods compared to regional competitors, as a golden opportunity to boost investment inflows.

Domestically, the FNCCI has launched the Nepal Development Company to mobilize small-scale capital from across Nepal and its diaspora for large-scale projects, a move Dhakal hailed as a game-changer for internal investment. He also welcomed recent policy reforms—such as legal amendments, a new economic reform phase, and digitized trade processes—as steps toward revitalizing the economy, urging the government to build on this momentum in its current fiscal policies and budget.

Despite these positives, Dhakal expressed frustration over the private sector’s lack of recognition, despite its outsized role in job creation (86%), revenue generation (over 80%), and investment (81%). “We seek security, respect, and protocol—none of which require state funds, only goodwill,” he said, appealing for a shift in how the government views its private sector partners.

Analysts see Dhakal’s remarks as a call to action amid Nepal’s evolving economic landscape. “The private sector’s leadership is critical, but it needs policy support and trust from the state to unlock its full potential,” said an economist in Kathmandu. As Nepal balances domestic challenges with global opportunities, the FNCCI’s advocacy could shape the nation’s economic trajectory in the years ahead.