KATHMANDU, April 10: Minister for Industry, Commerce and Supplies, Damodar Bhandari, has said aspirations for economic prosperity will remain unmet in the absence of collaboration with the private sector.

Addressing the 58th AGM of the Federation of the Nepalese Chambers of Commerce and Industry (FNCCI) here today, the minister acknowledged the contribution of the private sector to the nation's economy. "The government will treat the private sector as an important partner," he assured.

He pledged to take measures to strengthen the country's trade and investment atmosphere in consultation and coordination with the private sector.

The industry minister also thanked the private sector for its partnership with the government in the efforts to implement effective policies, protect domestic products, identify exportable goods and goods of comparative advantage, promote competitive trade, and mitigate trade deficit aiming to transform the import and remittance-based economy to production-based and internal export-based economy.

He stressed that time demands all the stakeholders concerned to work round the clock to make the Nepal Investment Summit ( April 28-29) a success. He also pledged to ensure an active role of the private sector to make the event successful, saying it was aimed at strengthening the economy through the mobilization of domestic and foreign investment.

On the occasion, he shared about the government's preparations for revising laws to facilitate endeavors in building an investment-friendly atmosphere.  

Expressing his concerns over the country's ballooning trade deficit, a large exodus of youth force in the pursuit of abroad jobs, and a shrinking contribution of industries to the economy, he underlined the need to alter this scenario.

As he asserted, the building of an investment-friendly environment is urgent to address the issues of unemployment and poverty. 

The minister insisted on the need for combined efforts to increase the contribution of industries and commerce sectors to the economy.

As he said, the government aims to build a dynamic economy through revisions to the industrial, commerce, trade logistic policy, innovative policy, small and medium scale industries promotion policy, supplies policy, and the policy concerning intellectual property.

Economy still not free of challenges: FNCCI president

Meanwhile, FNCCI President Chandra Prasad Dhakal said that the country's economy is still not free from challenges and that solutions should be explored by assimilating this fact.

Dhakal accused the role of control-based policies and programs in obstructing economic developments as needed.

"First of all, it is a must for all to admit that the economy is still in crisis and then finding solutions will be easier," he said, adding that there is a lack of a balance in the ratio of income and expenditures.

The private sector is trying to spread its wings to explore ways for additional income, but the State's support is not sufficient towards that end, according to him. As the FNCCI president stressed, the private sector wants additional support and encouragement from the government. It expects the government to come up with effective policies capable of promoting the business atmosphere and economy.

Stating that the financial management expenditures are around double the capital expenditures, he said at present it is essential to mobilize internal sources to avoid the prospects of an increased loan burden on Nepal in the course of its graduation to the middle-income developing country from the category of the least developed countries.

He advised the government to ensure that the private sector could invest without any unnecessary hurdles to address the issues of low economic growth seen in the past two years.

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