Private sector pledges full cooperation with government on reconstruction, economic revival
KATHMANDU: Private sector has pledged full cooperation with the government in the reconstruction, rebuilding and revival of the economy, representatives said after meeting the newly appointed Finance Minister, Rameshore Prasad Khanal, at the Ministry of Finance on Tuesday.
The government has already established a Reconstruction Fund to assess the damage incurred during the recent protests.
“We have also suffered losses,” said Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal. “We are ready to work collaboratively, supporting ourselves as we rise and assisting the government.”
Dhakal urged the finance minister to establish a continuous dialogue mechanism between the private sector and the government for economic restoration and good governance. He emphasised the need for an environment in which businesses can operate confidently and openly, and called for an extension of the deadline for submitting tax returns. FNCCI had requested an extension for returns due on September 10, and Khanal granted a one-month extension by ministerial decision.
FNCCI Senior Vice President Anjan Shrestha suggested that the private sector could contribute to reconstruction through its corporate social responsibility funds.
Representatives also stated that Nepal’s planned graduation from Least Developed Country (LDC) status in 2026 could be jeopardised by recent unrest. They cited Bangladesh’s reported efforts to postpone its own graduation to retain trade facilities as a cautionary example, and urged Nepal to act promptly.
FNCCI President Dhakal pressed for the restructuring and rescheduling of loans for businesses affected by the protests, and for tax exemptions, including relief on income tax, to attract investment. He noted the youth’s demand for efficient government services and stressed the need for optimal use of information technology and adherence to ethical practices.
“At this juncture, reducing the Value Added Tax (VAT) rate or applying a lower rate on essential goods, and announcing special packages to attract Indian tourists would be appropriate. Tax exemptions, production-based relief and concessional loans are necessary for small and medium enterprises. Additionally, by reviewing the budget, funds from unnecessary headings can be utilised for reconstruction,” he added.
Confederation of Nepalese Industries (CNI) President Birendra Raj Pandey said it was crucial to bolster business confidence and focus on revival.
Nepal Chamber of Commerce (NCC) President Kamlesh Kumar Agrawal highlighted the private sector’s significant contribution to the national economy and the need to boost business morale.
NADA Automobiles Association of Nepal President Karan Kumar Chaudhary called for collective efforts to revive the heavily damaged auto sector, while Min Bahadur Gurung, Founder of Bhat-Bhateni Supermarket, affirmed his continued commitment to invest, create jobs and contribute to revenue despite substantial losses.
In response, Finance Minister Khanal assured the private sector of the government’s support for economic reform and announced the one-month extension for tax-return submissions. He also said immediate relief measures, including deferring working capital loan guidelines for at least two years, would be considered.
