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KATHMANDU: A delegation led by from Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal met with President Ramchandra Paudel, on Thursday.
In the meeting with FNCCI Executive Committee members, President Paudel said the economic development of the country is possible only if the private sector participates in the economy. Mentioning that private sector accounts for 80% of Nepal's economy, President Paudel said the government and private sector should cooperate for the improvement of the current economic situation.
"Inability to create employment, increasing dependence on remittances, decreasing exports, inability to increase internal and foreign investment due to lack of policy reform and harmony, and various obstacles in service delivery have appeared from time to time. Therefore, I think that private-public partnership is necessary in this situation," he said.
The President stressed that everyone should pay attention to creating jobs in Nepal and improving the country's economy. President Paudel said that he wanted to meet with FNCCI earlier. But the meeting was not possible due to his health problem.
On the occasion, FNCCI President Dhakal said that although some indicators of the country's economy are positive, stakeholders should focus on making the economy sustainable by increasing the confidence of general public and businesspersons.
He opined that the government, central bank and private sector should cooperate with each other to create demand in the market in the current situation as the morale of the private sector and the general public has decreased.
Since the government has not been able to spend capital, and banks and financial institutions (BFIs) are unable to provide loans, there has been a lack of demand in the market, President Dhakal said and added, in such a situation, private sector should be encouraged to reduce the capital cost and increase investment. Further, the FNCCI president mentioned that the businesses have shrunk by two-thirds in five decades. Along with this, economic growth has been achieved less than the government target by six percentage points. He suggested that the capital costs should be reduced and funds should be transferred to the market.
FNCCI President Dhakal suggested the government take special initiatives to promote export and tourism and attract foreign investment.
On the occasion, FNCCI Senior Vice President Anjan Shrestha suggested that all sectors should take initiatives for the improvement of the economy.
FNCCI Vice President (Commodity) Hem Raj Dhakal said that this time due to the economic recession, all sectors have been affected and immediate reforms are needed.
