PM holds consultation with private sector representatives to improve economy

Published On: August 15, 2023 12:30 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Aug 15: The government has started holding discussions with stakeholders including the private sector, donor agencies, development partners and regulatory bodies after expected improvement was not seen in the economy despite the government's positive interventions. 

The government is holding consultation with various stakeholders as the market could not remain vibrant despite different reform measures taken to accelerate the economy.

Prime Minister Pushpa Kamal Dahal on Monday held a meeting with the representatives of different umbrella organizations of the private sector to seek their suggestion to bring the economy on track.

PM Dahal invited the representatives of Federation of Nepalese Chambers of Commerce and Industries (NFCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC).

On the occasion, the private sector leaders suggested that boosting the morale of the private sector is imperative to improve the country's economy. "Confidence of general people has decreased and morale of businessmen has gone down. The problem has surfaced after both the government and private sector could not increase the investment," the private sector's representatives said.

"Lack of demand in the market despite increased remittance inflows and arrival of tourists has added challenges to entrepreneurs," they added.

They pointed out that the financial institutions have not been able to extend loans due to limited capital expenditure, high interest rate and some contractionary arrangements made in the monetary policy.

The private sector demanded immediate payment of dues of the construction entrepreneurs, policy-level stability and an environment conducive to attract foreign investment.

The organizations also suggested that the government should encourage the private sector to bring in money from abroad by conducting the country's sovereign credit rating.

Regular supply of power at industrial corridors, participation of the private sector in construction of transmission lines and opening the land plotting are among the demands put forth by the private sector.

The private sector also asked the government to make a Bilateral Investment Promotion and Protection Agreement in the context that countries from the Middle East region are willing to invest in Nepal.

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