FNCCI, ILO pledge to boost labour market reform, job creation in Nepal

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and International Labour Organisation (ILO) pledged on Thursday to strengthen cooperation to boost labour market reform, job creation, skills development, entrepreneurship and social dialogue.

At a meeting on Thursday at the FNCCI Secretariat in Teku, FNCCI President Anjan Shrestha and Numan Özcan, Country Director of the ILO Office for Nepal, agreed to institutionalise their long‑term strategic partnership and make it result‑oriented to deliver shared priorities.

Shrestha said long‑standing cooperation with the ILO has strengthened Nepal’s labour market, enterprise development and social dialogue. He said the private sector is a major source of investment and growth and also provides productive, quality employment.

He called for an environment that encourages enterprise expansion, raises workers’ living standards and creates jobs for young people.

“Youth migration abroad, skill-job mismatch, worker shortages and low productivity are Nepal’s primary challenges,” Shrestha said. He added there is a shortage of workers in manufacturing, construction, tourism and agriculture.

He urged increased investment in skills development, modern technology, occupational safety and health, and continuous workforce training.

With Nepal set to graduate from Least Developed Country (LDC) status, Shrestha said enterprises and workers must be prepared for competition. He said technology-friendly yet worker‑friendly policies are needed as digital platforms, artificial intelligence, automation and the green transition alter the nature of work.

Shrestha said the newly elected FNCCI leadership has launched a reform‑oriented action plan titled '6 Pillars, 60 Initiatives', prioritising investment promotion, policy representation, employment and productivity, innovation, sustainable development and global partnership. He added that the ILO has supported projects on women’s entrepreneurship, employment services, grievance management and private sector participation in employment services, as well as work related to LDC graduation.

Numan Özcan, Country Director of the ILO Office for Nepal, said the ILO will continue to work with the FNCCI on business growth and job creation. He said joint action by the ILO, FNCCI, the government and other stakeholders is needed to tackle labour market informality, the platform economy, climate change and skills mismatches.

FNCCI Vice President (Associate) and Employers Council Chairperson Prabal Jung Pandey said labour law reform should be inclusive, transparent and based on genuine tripartite social dialogue. He added that clear policies are needed for skills mapping to link returnee migrant workers’ skills with domestic industry needs, to build capacity for international labour standards and compliance in the context of LDC graduation, and to address new labour relations in platform economies such as ride‑hailing and delivery services.