Council of Ministers implements PSPP strategy after FNCCI proposal

KATHMANDU: The Council of Ministers has decided to implement the Private Sector Protection and Promotion (PSPP) Strategy with immediate effect after a proposal from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). The Council of Ministers took this decision following its meeting on March 27.

The Cabinet said the move, listed as the 60th point in the Government of Nepal’s hundred-point governance reform programme, aims to ensure economic stability, strengthen the investment climate and restore private sector confidence. The government agreed to incorporate FNCCI’s suggestions and to implement action plans addressing physical security and property protection, economic recovery, regulatory simplification and measures to promote investment and youth entrepreneurship.

The decision follows FNCCI advocacy that began during the Economic Discourse 2.0 programme on November 8, 2025, and continued through subsequent consultations. FNCCI submitted a concept paper on PSPP after discussions held during the Collaboration for Peace, Stability and Prosperity programme.

“Through this, the government has committed to guaranteeing the security of private sector businesses, individuals, and investments, along with necessary promotion. We expect this to help boost private sector morale and support investment promotion,” FNCCI President Chandra Prasad Dhakal said.

The Cabinet decision includes provisions for integrated relief and business simplification for enterprises affected by vandalism and arson during demonstrations on September 8 and 9, 2025. The government said necessary concessions will be provided to affected businesses and individuals.

In a related move, the government accepted recommendations from the High-level Economic Reforms Recommendation Commission, formed for the second phase of economic reforms at FNCCI’s urging. Newly appointed Finance Minister Swarnim Wagle has initiated a process to repeal 15 laws as part of the reform agenda.

“FNCCI had requested the amendment, modification, and repeal of these and other laws through the National Economic Transformation 2030. PSPP will function as a mechanism to implement the Commission's recommendations. We will collaborate with the government in strategy formulation and implementation,” Dhakal said.

The Cabinet also approved creating an integrated structure to streamline agencies with overlapping functions, such as the Investment Board Nepal and the Department of Industry, to make it easier for foreign investors to access services.

To improve governance and service delivery, the government committed to shifting most public services to digital platforms and pledged to prepare a one-door business platform within 45 days to provide all commercial services. Officials indicated the service could be delivered through the Nagarik app; FNCCI said it will submit a study report on this option to the government soon.

FNCCI welcomed the government’s emphasis on energy production and export. The federation has urged that energy be treated as a raw material and supplied to manufacturing industries at subsidised rates, a move it says would produce double benefits for industry and exports.