Nepali business community should take charge of Nepal's economic prosperity, says Nepali industry body
In a move encouraging private sector participation in Nepal’s development, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chairwoman Bhawani Rana said the private sector will drive the country in the future.
Addressing the 51st Annual general meeting of Makawanpur Chamber of Commerce and Industry, she opined that the private sector would lead Nepal towards prosperity and development.
In this regard, she called on the entire Nepali business community and entrepreneurs to take charge of the economic prosperity of the country.
“The under-construction fast-track and Nijgadh Airport are major catalysts of development in the District. Makawanpur has a big scope of tourism development,” she added.
Here it is noteworthy that the Nepali private sector had, earlier in November 2017 announced its wish list for the new Nepali Government.
Private Sector Wish List
In its wish list to the next Nepali administration, the Nepali private sector community had sought fight against corruption, cut in bank interest rates, and the promotion of small and medium enterprises and quality tourism.
Top on priority of the wish-list was a clear road map to avoid double taxation for more private sector investment.
“The private sector is expecting a commitment from the political parties that they will urge the government to prioritize the economic agenda. Entrepreneurs seek a clear provision to avoid multiple taxation while paying taxes to the local, provincial and central governments under the new federal system,” Rana said in an economic dialogue organized to release the wish-list.
“There is a need to tap private sector investment by ensuring an investment-friendly environment,” left leader Khadga Prasad Oli said in a statement while promising removal of multiple taxation system if left forms the next Nepali government.
Fund Crunch, A Key Concern
Meanwhile, fund crunch in Nepal’s Rastra Bank (NRB) (over a period) is resulting in high interest rates for the Nepali private sector community.
According to NRB, the central bank has halted issuing loans because of the excessive money lending during the first five months of the current fiscal year that began in mid-July 2017.
Most of the banks have already reached the 80 percent loan-lending limits and are charging high interests for the new loans to manage the resources, particularly to the institutional depositors.
This move by the central bank is creating a concern for the country’s industrialists.
“Due to dramatic rise in interest rate, the production costs of industries is set to rise which will put Nepali products into competitive disadvantage against imported goods,” the Confederation of Nepalese Industries (CNI), an apex body representing medium and large sized industries in Nepal said in a statement.
According to CNI, unpredictability of interest rates will also hurt the private sector investment.
“The excessive lending of banks and the government’s failure to spend its budget well so far are mainly responsible for current liquidity crunch,” says NRB Spokesperson Narayan Prasad Paudel.