KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to address the legitimate demands of agitating construction professionals.
FNCCI has expressed its concern over the agitation and demands made by its member organisation Federation of Contractors' Associations of Nepal (FCAN).
The FNCCI in a press statement said that delay in hearing the fair demands of the construction sector, which has a large contribution to the gross domestic product (GDP), will cause problems in the sector as well as in the economy.
Non-payment even after the contractors' completion of construction work, has a negative impact on the financial system and the overall economy, so it is important for the government to be sensitive, the FNCCI stated.
As the projects related to development and the livelihood of the common people have come to a halt, the government has not been able to make the capital expenditure and the general public have not been able to get the facilities, said FNCCI.
The government's capital expenditure of around 61% in the previous fiscal year has not sent a positive message at the national and international level, FNCCI mentioned in the statement.
FNCCI stated that the economy has gone into recession as construction, industry and wholesale trade remained negative, and this has seriously affected the revenue of banks and financial institutions (BFIs), manufacturers of construction materials such as cement, rods, and the government. Revenue is down by 13% while industries are running at around 30% to 35% capacity, the statement read.
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