Confederation of Industries Chairman Emphasizes Need for Private Sector-Led Skill Development

Kathmandu. Chairman of the Confederation of Nepalese Industries (CNI) Birendra Raj Pandey has emphasized that increasing labor productivity is essential for the country's economic development and prosperity, stressing that skill development programs should be conducted under the leadership of the private sector.

Speaking at a discussion with industrialists and businessmen organized at the Ministry of Youth, Labor, and Employment in Singha Durbar on Thursday, Chairman Pandey stated that Nepal's labor productivity is very weak compared to neighboring and similar countries. He noted that according to currently available data, Nepal ranks third from the bottom, and commented that current skill development efforts are scattered and not result-oriented. Chairman Pandey said that due to government-level training being scattered across various ministries and departments, the expected achievements have not been realized. He argued that weak human resources could become a major challenge in achieving the national goal of building a $100 billion economy. He stressed the need to adopt a 'demand-driven' approach, focusing on what kind of manpower industries need, rather than a 'supply-driven' approach that focuses on the number of people trained by training centers.

Chairman Pandey informed that the Confederation itself has succeeded in providing employment to 3,200 out of 3,375 individuals trained some time ago. He demanded timely reforms in procedures, stating that some trainee programs introduced by the government have not been fully successful due to procedural complexities.

"Recent reports also show that Nepal has not lacked effort," said Chairman Pandey, "but because those efforts have been scattered, the expected results have not been achieved." He pointed out that training conducted separately by various ministries and bodies has not yielded effective results. "For example, according to CTEVT data from two years ago, the enrollment rate was 51 percent, the training completion rate was 47 percent, and the employment rate was 49 percent," he added, "Overall, only about 15-16 percent actual achievement is seen."

He clarified that significant improvement is now necessary, and that industrial productivity, competitive capacity, and business operating costs all depend on skilled manpower. He stated that strengthening human capital is indispensable for the country to achieve its major economic development goals. "Our ultimate employer is the private sector, so the skill development system must be demand-based," he said. "The meaningful participation and leadership of the private sector must be ensured in everything from criteria, curriculum, training, evaluation, and certification, based on what kind of manpower industries require." He added that only in this way can the skilled manpower required by industries be prepared, which will support industries within the country and also provide a basis for good income when going abroad.

He suggested addressing the need for simple enrollment processes that align with the human resource policies of industries, arrangements for collective training for small industries, and training periods longer than six months for large industries. He clarified that producing skilled manpower within the country will increase the competitiveness of industries and ensure that those going for foreign employment receive higher salaries. Chairman Pandey stated that the Confederation is committed to systemically improving the skill development and technical and vocational education (TVET) sector at the national level in collaboration with the ministry to resolve policy and practical issues.