Budget incorporates private sector suggestions: FNCCI President Dhakal
KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President and co-founder and chairman of Global IME Bank, IME Group, Chandra Prasad Dhakal said that budget for fiscal year 2025/26 incorporates most of the private sector's suggestions and is emerging as a key driver for economic improvement.
Speaking at an event titled 'Post Budget: A Holistic Discourse', organised by the Economic Media Society Nepal (EMSON), Dhakal said the budget had addressed long-standing private sector demands. "We have been making demands not only for our own benefit but for the overall improvement of the economy. This time, the government has made arrangements through laws and the budget to encourage the private sector based on those very suggestions," he said.
Dhakal emphasised that although many suggestions have been included, effective implementation is crucial. He recalled that previous budgets had incorporated measures for economic upliftment but poor execution subsequently disheartened the private sector.
He highlighted that the budget shows new courage by allowing the export of Nepal's mineral resources. "We had been demanding a system where mineral products could be exported after completing all necessary industrial processes, and since this has been included in the budget, its implementation should not be delayed," he said. He stressed that Nepal should follow the example of Middle Eastern countries by processing and exporting its mineral resources, and noted that other private-sector demands, such as facilitation in Special Economic Zone (SEZ) rent and the construction of international convention centres, have also been addressed.
Dhakal acknowledged that some issues remain, stating that provisions such as hydropower power purchase agreements (PPA) and the "take and pay" clause may hinder foreign investment and bank financing. He welcomed the removal of the foreign currency threshold for hotels in border areas to boost tourism, while citing the recurring case of Dhaubadi iron mine as an example where lack of implementation leads to disappointment among investors and citizens.
He concluded that only through realising the budget's provisions and establishing good governance can the government achieve the 6% economic growth target.
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