Arrests of industrialists, bankers damage Nepal's investment climate: FNCCI

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has expressed serious concern over the recent arrests of industrialists, construction entrepreneurs and bankers. It said the government has carried out the detentions over the past few days under the guise of investigating various economic issues.

The private sector umbrella body said arresting high-ranking leaders from the private and banking sectors in a manner typical of criminal offences has created a sense of fear within the business community. The FNCCI warned that these actions send a negative message to both domestic and international investors and could damage the overall investment climate.

FNCCI pointed out that the arrest of a bank chief executive officer regarding loan-recovery activities could severely affect the credibility of the entire financial system. The organisation warned such moves might weaken banks’ decision-making capacity on credit disbursement, leading to a contraction in investment and harming the national economy.

The FNCCI has urged the government to conduct its investigations discreetly. The federation argued that arresting individuals before preliminary investigations are complete and conducting media trials cause irreparable damage to the reputation and honour of businesspeople. It has requested that cases involving civil liabilities be handled according to their specific nature rather than through criminal proceedings.

Citing the Constitution of Nepal, the private sector reminded the government of the fundamental right to live with dignity and the legal principle that a person is not considered an offender until proven guilty. The FNCCI called on the state to show greater regard for these constitutional protections.

While the private sector remains hopeful that the economy will gain momentum under the policies of the recently formed government, which holds a nearly two-thirds majority, it cautioned that the recent arrests could undermine that progress. The FNCCI has asked the government to create an environment that encourages investment growth and builds business confidence rather than leaving investors feeling insecure.