Himal Press 
KATHMANDU: Prime Minister Pushpa Kamal Dahal on Monday met with leaders of three major representative bodies of Nepal’s private sector and sought their suggestions to strengthen the country’s economy.
Dahal met Federation of Nepal Industry and Commerce (FNCCI) President Chandra Prasad Dhakal, Confederation of Nepalese Industries (CNI) President Rajesh Kumar Agrawal, and Nepal Chamber of Commerce (NCC) President Rajendra Malla. During the meeting, these business leaders urged the government to reinvigorate the private sector’s morale to stimulate economic recovery.
Citing dwindling public confidence and eroded business morale, the three business leaders said the challenges at hand have arisen from the inability of both the government and the private sector to bolster investment. They said demand is not picking up in the market due to slow government spending, high-interest rates, constrictive working capital loan guidelines, and stringent bank capital adequacy rules, which collectively impede the inflow of funds from financial institutions.
The business leaders have urged the government to take needful measures to lower the cost of capital and enhance the flow of funds into the market. They also sought specific initiatives to boost capital expenditure and create an environment conducive to starting development projects before the Dashain festival (mid-October).
Additionally, the private sector representatives requested the government to promptly settle outstanding payments owed to construction entrepreneurs, ensure consistent policy frameworks, and enhance the business climate to attract foreign investments. They also suggested that the government initiate the process of securing foreign funds by getting the country’s sovereign credit rating.
The business leaders voiced concerns over the increasing frequency of unscheduled power cuts in industrial corridors and said the private sector should be involved in the construction of transmission lines. They further pressed the government to remove landholding restrictions for the industrial sector and open land plotting.
Stating that businesses from Middle Eastern countries are eager to invest in Nepal, the business leaders requested the government to facilitate them by signing Bilateral Investment Promotion and Protection Agreement (BIPPA) with these countries.
In addition, they asked the government to withdraw the lending cap of NPR 120 million for share investors and to enable banks to consider deposits held by local units as part of their deposit base.
