BAFIA amendment will affect economic activities, says FNCCI President Dhakal

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal stated that the amendment to the Bank and Financial Institution Act (BAFIA) will affect Nepal's economic activities.

Speaking at the inaugural session of the third edition of National Banking Discourse, 2025, in Kathmandu, Dhakal said that if the proposed amendment to the Act, currently under consideration in Parliament, is passed as is, economic activities will be affected.

Dhakal argued that the bill's proposal to amend the BAFIA-related Act, which seeks to differentiate between bankers and industrialists, should be taken seriously. "The issue of differentiating between businesspeople and bankers could create problems for the economy," he said. "On the one hand, it is proposed to make promoters responsible by giving 51% of shares to the founders. In addition, 'related parties' have been defined. If this provision means that investors with more than 1% share cannot obtain loans, then almost all industries and businesses face the risk of closure."

He also stated that Nepal can achieve its economic development goals if the budget is implemented. Dhakal described the budget provision allowing for the domestic use and export of mineral resources without harming the environment as positive. Citing the Middle East as an example, he said, "If the Middle Eastern countries had not exported their petroleum products or had not been allowed to export them, they would not be in their current state today. Therefore, we too should facilitate the use and export of Nepal's natural resources without negatively impacting the environment."