Federation of Commerce and Industry Chairman Calls for Stable Policies to Boost Investment

Kathmandu. Federation of Commerce and Industry Chairman Chandra Prasad Dhakal has stated that the government, which is close to a two-thirds majority, should create an investment environment in the country by adopting clear and stable policies. Speaking at a discussion on the upcoming budget in the capital, he said that the private sector and investors have suffered from policy instability in the past.

He said that if the government moves the country forward with stable policies, there will be no shortage of investors in Nepal. Recalling that government commitments have not been effectively implemented in the past, Dhakal said that the government should not delay in implementing commitments now.

According to him, the current government should bring the upcoming budget by focusing on the suggestions given by the high-level economic reform commission. He emphasized that the budget should ensure the active participation of the private sector in import substitution, increase in domestic production, and infrastructure development. 

Dhakal said that although the government has committed to involving the private sector in infrastructure development, its practical implementation has been weak. He claimed that projects get approval but do not move forward for various reasons, which has demoralized the private sector. 

'We have always been saying stable government and stable policy. Now a government with about two-thirds majority has been formed, and the upcoming policies should be able to instill confidence in investors,' he said. He added that if stable policies that instill confidence in investors are implemented, the economy can gain momentum quickly. 

Dhakal informed that the Federation has established an investment company with an investment of 10 billion rupees, including members from all three sectors and individual investors, clarifying that the intention is to send a message that large projects can be operated by mobilizing domestic capital. He emphasized the need to issue and quickly implement the law related to alternative finance, and said that it is necessary to give a clear message of policy stability to both domestic and foreign investors.

At the program, Nepal Industry Confederation Chairman Birendra Raj Pandey said that Nepal has many tax rates, which should be removed by the upcoming budget. He said that the government should announce through the budget an environment where all taxes are collected from a single point by integrating the tax collection system.

He said that local levels are imposing taxes that negatively affect businesses, and the federal government should discourage them. 'The various types of taxes existing in Nepal should be integrated, and a system should be established where only a limited number of taxes remain. A system should be developed where all taxes are collected from a single point and distributed by the state to various levels or bodies,' said Chairman Pandey. 

He said that smuggling is causing great difficulty to domestic industries and the government is also losing revenue, and all concerned bodies should work together to control it. He emphasized the need to make inter-governmental coordination effective with clear mandates and responsibilities to control unauthorized imports and customs revenue leakage.

Similarly, Nepal Chamber of Commerce Vice-President Deepak Malhotra said that due to the unstable government and unstable policies, an environment for investment in the country has not been created. He emphasized that the government should move forward with the private sector to achieve ambitious goals such as reaching the size of the economy to one hundred trillion and per capita income to 3 thousand dollars.

He said that the upcoming budget should focus on agriculture and tourism, giving Thailand as an example of how it has risen through these sectors. '50 years ago, Bangkok's standard was below Nepal's. Today, Thailand has risen much higher due to agriculture and tourism,' Malhotra said. 'We also have agriculture, tourism, hydropower, and many resources. But, due to the unstable government, we have not been able to move forward.' 

He said that a large budget is presented for cheap popularity, but the target is not even close to being met, and this time the government should bring an implementation-oriented smart budget. He clarified that ambitious goals set by the government cannot be achieved if there is policy instability, and emphasized that the current government should not do anything that discourages the private sector.