Private Sector Seeks Government Support for Protection and Promotion of Businesses

The private sector has urged the government to ensure stronger protection of business assets following repeated attacks and damage to private property during various political movements in the country.

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been drafting a Private Sector Protection and Promotion Plan (PSPPP) and stressed the need for its approval by the Cabinet. The proposal calls for government backing to safeguard and promote private enterprises.

FNCCI President Chandra Prasad Dhakal raised the issue during the 29th anniversary and awards ceremony of the Society of Economic Journalists of Nepal (SEJON).

Dhakal said the private sector continues to come under attack during every political movement, discouraging both domestic and foreign investment. Referring to the recent Gen Z movement, he said that although the protesters raised legitimate demands, infiltration led to significant damage.

“The media plays a crucial role in attracting investment. Good governance, corruption control and efficient service delivery are essential to create an investment-friendly environment,” he said.

He urged the state to guarantee security for businesses and called on the government to endorse the PSPPP through the Cabinet.

Similarly, Birendra Raj Pandey, president of the Confederation of Nepalese Industries, blamed government policies and regulations for the declining contribution of the industrial sector to the economy. He said that despite improvements in the external sector indicators and single-digit interest rates, investors remain hesitant to invest. “The state must take immediate steps to restore the falling confidence of investors,” he said.

Kamalesh Kumar Agrawal, president of the Nepal Chamber of Commerce, said the economy has yet to fully recover after the COVID-19 pandemic and that losses from the recent Gen Z movement have further worsened the situation. He noted that industrial enterprises have become increasingly vulnerable from a security perspective.

Agrawal suggested effective implementation of loan restructuring, scrapping the working capital loan guideline, simplifying value-added tax by adopting a multi-rate system, continuing export subsidies, and enacting laws for debt recovery to resolve the cooperative sector crisis.

Addressing the event, Finance Minister Rameshore Khanal said the country needs a serious self-assessment to understand why it has failed to achieve the expected economic growth. “Although the government with an election mandate may not be able to deliver major results, some positive initiatives have begun during this period,” he said, adding that visible progress has been made in large projects that had remained stalled for years.

He urged vigilance regarding the authenticity and impact of information in the age of growing technology use, warning that false and unverified information in the media could negatively affect international relations and the investment climate.

Industry, Commerce and Supplies Minister Anil Kumar Sinha said the country’s economy has faced repeated ups and downs over the past three decades. He pointed out that the economy has failed to generate adequate employment, forcing even unskilled youths to seek jobs abroad. “The private sector is the backbone of the economy,” he said. “The government is moving forward by prioritising timely elections, good governance and service delivery.”

Meanwhile, Governor of Nepal Rastra Bank Bishwo Nath Paudel said liquidity management remains the main challenge facing the economy. “It is alarming that investment in large infrastructure projects has not expanded despite adequate liquidity and low interest rates in the banking system,” he said. He added that banks and financial institutions have concentrated their lending in limited sectors and called for diversification of financial products.

Governor Paudel also stressed the need to consider local economic priorities along with risk management while expanding credit.