Prez Paudel calls for stronger government-private sector cooperation for Nepal’s economic recovery

KATHMANDU: Stronger cooperation between the government and the private sector is essential for Nepal’s economic recovery and job creation, President Ramchandra Paudel said on Thursday. He made the remarks during a meeting with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) at the presidential residence, Sheetal Niwas.

Highlighting the private sector as a critical partner in national development, President Paudel emphasised the need to create a supportive environment for investment, production, employment and entrepreneurial expansion.

“Only trust and cooperation between the government and the private sector can make the economy dynamic. We must increase production, promote exports, attract domestic and foreign investment, create jobs and enhance Nepal’s competitiveness,” President Paudel said. “We must tangibly capitalise on the opportunities available in hydropower, tourism, agriculture and agro-based industries, information technology and manufacturing.”

Acknowledging the severe impact of recent natural disasters on daily life, infrastructure and economic activities across the country, President Paudel expressed sorrow over the loss of lives and property caused by flooding in the Bhotekoshi region. He commended the FNCCI for its prompt assistance in rescue, reconstruction and rehabilitation efforts, adding that building a prosperous Nepal requires a shared national commitment involving the state, the private sector and wider society.

During the meeting, FNCCI President Anjan Shrestha outlined the severe challenges currently facing Nepal’s economy, noting that investment growth had not met expectations, market demand remained weak and investor confidence had yet to recover fully. He said the floods in Bhotekoshi region had disrupted roads, bridges, hydropower facilities, tourism, trade, cross-border movement and the supply chain between Nepal and China.

Given the substantial resources required to rebuild damaged infrastructure and private projects, Shrestha said the government alone would struggle to complete the reconstruction work. He noted that the private sector makes a significant contribution to Nepal’s gross domestic product and provides widespread employment, stressing that it should be viewed as an essential partner in nation-building rather than merely as a commercial entity.

To expand investment, production and employment, Shrestha highlighted the need for stable and predictable policies, clear legal structures, quality infrastructure, efficient public services and an investment-friendly environment.

“Dialogue between the government and the private sector needs to be institutionalised and results-oriented. Only when the practical problems faced by entrepreneurs are addressed at the policy level will there be a positive impact on investment, production and employment,” Shrestha said.

Shrestha informed the President that the FNCCI had submitted recommendations to the government regarding legal reforms needed to promote investment and broader economic development. Expressing gratitude for President Paudel’s positive perspective and guidance, Shrestha reaffirmed the federation’s commitment to making its ongoing dialogue and cooperation with the government more effective.