Brawl in CA worries private sector

KATHMANDU, Jan 21 :

Business community has expressed serious concern over increasing polarization of political parties ahead of the deadline for new constitution.

They also said Tuesday´s brawl in Constituent Assembly (CA) and increasing frequency of bandas and strikes was denting confidence of the private sector.

"Polarization among political parties in CA and strikes and bandas will push the country toward uncertainty," Hari Bhakta Sharma, senior vice president of Confederation of Nepalese Industries (CNI), said. He also said such incidents could deteriorate Nepal´s image in international arena. "We need to have a good image if we are to bring foreign investments into the country," he added.

Saying that political leaders have failed to translate their commitments into practice, he urged top leaders to step down and give leadership to capable young leaders.

Investors had responded positively to news of consensus among political parties on contents of new constitution on Monday. Nepal Stock Exchange (Nepse) index had went up by 30.9 points on Monday. But the benchmark index shed 12.6 points on Tuesday due to scuffle among political parties in CA early Tuesday morning.

Pradip Jung Pandey, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said Nepse index jumped on Monday as investors were confident about getting new constitution within the given timeframe. "Political leaders have expressed commitment for hydropower development, tourism promotion and employment generation.

Country´s situation will worsen if political parties failed to bridge their differences and forge consensus on constitution writing," he added. "Political agendas should not sideline economic and development agendas."

As many as 19 political parties, led by UCPN (Maoist), enforced nationwide strike on Friday and again on Tuesday. The strikes brought economic activities and daily life to a grinding halt.

According to Nepal Rastra Bank, Nepal faces band and strikes inflict loss of Rs 1.8 million on national economy.

Country´s private sector was hopeful that promulgation of new constitution within the given timeframe would give pace to development works across the country. But tensions among political parties have dampened their hope.

"The cost of first CA election was equivalent to the cost of developing a 200 MW hydropower project," Pandey said, adding, "It will be similar waste of taxpayers´ money if parties fail to promulgate new constitution from CA.”

Investors´ confidence had increased following CA election in November 2013 and subsequent formation of a stable government. Following the election, massive investment commitments have come in sectors like hydropower and tourism. Uncertainty in constitution writing process, however, has dampened their confidence.

Source: Republica