KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the International Finance Corporation (IFC) to assist Nepal to find a way out of existing economic challenges and to enhance its financial accessibility.
The FNCCI has stated that the support and cooperation from the IFC is necessary to promote small and medium-scale industries in Nepal, to promote infrastructure development and to see the improved investment status.
During a meeting with visiting Susan M Lund, IFC Vice President for Economics and Private Sector Development, FNCCI President Chandra Prasad Dhakal insisted on assistance from the IFC to promote the economic atmosphere in the country.
"Nepal is currently grappling with economic issues primarily due to challenges in managing the post-Covid19 situation. The government and the mass as well have been affected by the economic slowdown, particularly in the private sector," he said.
The government's revenue decreased by around 13% and people's purchasing power has declined due to increasing inflation, he added.
In response, the IFC Vice President said they were ready to cooperate with the FNCCI for the promotion of private sector.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries.
The FNCCI in collaboration with IFC had prepared a report on the contribution of private sector to the economy and a conference of small and middle-scale entrepreneurs.
The IFC Vice President said the development centre and skill development to be started for small-scale entrepreneurs by FNCCI are important.
On the occasion, FNCCI Senior Vice President Anjan Shrestha pointed out the need for making the market dynamic as most of the industries are in operation at low capacity.
Similarly, Vice Presidents duo Hemraj Dhakal and Jyotsana Shrestha shared that improvement in the tax system and promotion of goods comparative advantages for Nepal was necessary.
Manoj Paudel, Chairperson of the Investment and International Affairs Forum of FNCCI, emphasized policy-level reforms in investment expansion, according to FNCCI.
