Nepali Private Sector Expresses High Hopes for Economic Reforms Under New Government

Kathmandu. The private sector has placed high expectations on the new government regarding economic and policy reforms. Business leaders voiced these expectations during a comprehensive interaction program on the future direction of the economy, challenges, and the role of the private sector, organized by Shiva Prasad Ghimire, a candidate for Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

On the eve of the formation of a new government following the changed mandate, industrialists and businesspersons expressed the view that the formation of a stable government is positive. Most businesspersons expect that with a stable government finally taking shape after a long time, the sluggish economy will become dynamic, and policy-related difficulties will be resolved.

The organizer, Ghimire, shared his views on the international economic challenges posed by tensions in the Middle East and the caution Nepal should adopt. He stated that although the private sector plays a leading role in job creation, production growth, and revenue collection, businesspersons are suffering due to policy instability, procedural hassles, and lack of financial access.

Ghimire emphasized that the new government must introduce policies prioritizing investment security, tax system reform, and infrastructure development, while also promoting import substitution and export promotion.

FNCCI President Chandra Prasad Dhakal stated that the recently concluded election sent a message of political stability that the private sector had sought for a long time. He mentioned that the election results have raised hopes for some improvement in the country's economy for the private sector.

Stating that all political parties and the government have accepted the private sector as the backbone of the economy, he stressed the need for a single and united voice from the private sector on the economic agenda.

FNCCI Senior Vice President Anjan Shrestha stated that a production-oriented economy is essential to end the compulsion of going abroad for employment and importing for consumption. He said that government services must be made efficient through online means rather than queues. He clarified that the private sector is ready to fully support the new two-thirds majority government with good governance and transparency.

Former President Bhawani Rana stated that there are many hopes from the new government to be formed by the new mandate. She expressed the expectation that a stable government would focus on economic improvement by making necessary policy reforms, as policy and economic reforms could not happen during the long period of unstable governments.

It was her view that a production-oriented economy is indispensable to end the compulsion of going abroad for employment and importing for consumption. 

Emphasis on Consensus for FNCCI's Upcoming Leadership

The upcoming general assembly and election of the Federation also received special priority. As the program was organized by Ghimire, who is also a candidate for the Vice President from the commodity sector, he emphasized that the upcoming leadership of the Federation should be chosen by consensus.

Former officials expressed concern that the selection of the Federation's leadership is becoming ostentatious and expensive due to electoral competition. FNCCI President Dhakal, along with former Presidents Bhawani Rana, Pradeep Kumar Shrestha, and Kush Kumar Joshi, unanimously agreed that the leadership selection of a prestigious institution like the Federation should be by consensus. 

Their suggestion was that leadership should be chosen through agreement rather than a flamboyant election to send a message that the private sector is united in the current situation where a powerful government is about to be formed.

According to the FNCCI statute, the current Senior Vice President Anjan Shrestha is certain to automatically become the President. For the next term, there is talk of a main contest between Ramchandra Sanghai, Hemraj Dhakal, and Dilsundar Shrestha for the Senior Vice President position, and lobbying is intense for Vice Presidents and Central Members from various groups. However, continuous pressure from former officials and efforts to reach a consensus at the last minute appear likely.