NCC, World Bank Group hold high‑level talks on private sector, investment

KATHMANDU: A high‑level discussion between Nepal Chamber of Commerce (NCC) and the World Bank Group focused on the state of Nepal’s private sector, investment opportunities and current challenges.

A programme at Chamber Bhawan, in Jamal, Kathmandu, brought together NCC President Kamlesh Kumar Agrawal, NCC officials, chairpersons of various NCC committees, industrialists and businesspersons, and a World Bank Group team led by South Asia lead economist Marcin Piatkowski.

During the discussion, NCC President Agrawal presented his assessment of the country’s economic situation, the economic impact following the Gen‑Z protest, the investment environment, necessary policy and legal reforms, and the potential for sustainable economic development. He said Nepal is the best in South Asia in terms of natural resources and that the foundation for long‑term economic prosperity can be laid through exploration and effective utilisation of the country’s vast resources. He added that the goal is to establish Nepal not only as a country graduating from least developed country (LDC) status but also as the country achieving the highest per‑capita income in South Asia.

Agrawal said strong factors such as Nepal’s 57% youth workforce, low production cost, favourable climate and assurance of return on investment make Nepal an attractive destination for foreign investment. He emphasised that there is huge potential for investment in sectors such as physical infrastructure, agriculture, hydropower, tourism, mining, herbs and medicinal plants, and that policy clarity and an investment‑friendly environment must be created in these areas. He said that even though the economy was affected after the Gen‑Z protest, the morale of the private sector remains high, and he requested a review of the World Bank’s projection that Nepal’s economic growth would remain at 2.1% after the protest, calling that estimate unrealistic.

Chairpersons of various NCC committees, industrialists and businesspersons presented problems, challenges and reform suggestions relating to agriculture, information technology, land and housing, energy, tourism and the service sector.

On the occasion, economist Piatkowski stressed the need to focus on institutional reform, investment promotion, policy consistency and innovation to strengthen Nepal’s private sector. On behalf of the World Bank, the team presented a working paper on investment opportunities in Nepal, policy stability and strengthening implementation capacity.

The World Bank Group team accompanying Piatkowski included Ashim Nepal, task team leader and operations officer for Country Advisory and Economics at IFC; Faria Tasin, senior operations officer at IFC; and Kamalika Das, economist for South Asia Country Advisory and Economics at IFC.