“Nepal Has an Unprecedented Opportunity; Let’s Build a Strong, Self Reliant Economy Together”: Chandra Prasad Dhakal

President of the Federation of Nepalese Chambers of Commerce and Industry, Chandra Prasad Dhakal, has said that Nepal is currently at a critical turning point with a rare opportunity to strengthen its economy and create sustainable growth through private sector leadership.

Addressing the 60th Annual General Meeting (AGM) of FNCCI in Kathmandu, Dhakal stated that the organization’s six decade journey represents more than just time it reflects resilience, partnership, and continuous contribution to Nepal’s economic development. He emphasized that FNCCI has consistently worked to strengthen the voice of the private sector and improve the business and investment environment despite political instability, natural disasters, and economic challenges over the years.

Dhakal highlighted that the formation of a stable government with a near two thirds majority presents a significant opportunity to ensure policy stability and accelerate development. He welcomed the government’s recent decision to implement the Private Sector Promotion and Protection Policy, noting that it would help boost confidence among entrepreneurs by ensuring both physical and policy level security.

He stressed that creating jobs within the country remains a major challenge. With around 500,000 youths entering the labor market annually and nearly 700,000 leaving for foreign employment each year, Dhakal said Nepal must focus on generating dignified, well paying jobs domestically. He pointed out that the private sector already provides around 86 percent of employment and must be supported to expand further.

Comparing Nepal’s economic progress with countries like South Korea, Bangladesh, Vietnam, and Cambodia, Dhakal said Nepal has fallen behind despite having similar starting points decades ago. He noted that Nepal’s economy has grown at an average rate of around 4 percent over the past three decades, while foreign direct investment has remained below one percent of GDP.

Dhakal also raised concerns about global and regional challenges, including rising fuel costs and instability in the Middle East, which could affect tourism, remittances, and overall economic stability. He stressed the need to strengthen Nepal’s domestic economy to withstand such external shocks.

Calling for a new phase of economic reforms, Dhakal urged the government to focus on legal stability, good governance, and the use of technology. He emphasized that improving governance and reducing excessive regulation are key to attracting both domestic and foreign investment. He also encouraged the use of digital platforms to simplify business processes.

He shared that FNCCI has initiated efforts to mobilize domestic capital through the establishment of a Rs. 10 billion investment company, which could support projects worth up to Rs. 50 billion. This, he said, would demonstrate that large scale projects can be executed using local resources.

Dhakal further underlined the importance of integrity and transparency, stating that good governance is essential to economic growth. He noted that both the private sector and the government must work together to build trust and create a supportive environment for investment.

Concluding his address, Dhakal expressed optimism about Nepal’s future, saying that despite past challenges such as the earthquake and the COVID-19 pandemic, the private sector has shown resilience. He urged entrepreneurs to stay positive, work collaboratively, and take the lead in driving economic transformation.