FNCCI Senior Vice President Dhakal Urges to Take Initiative for Immediate Solution of Liquidity Problem

Senior Vice President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal said that the liquidity problem in the banking sector should be solved immediately.

Speaking at the inaugural function of the 34th Annual General Assembly at the Convention of Bhaktapur Chamber of Commerce and Industry on Friday, Senior Vice President Dhakal urged the Government of Nepal and Nepal Rastra Bank to take immediate steps to address the liquidity problem in the market.

"Business and industry, which has been weakened by the Covid-19 epidemic for more than two years, is slowly recovering. But the current liquidity crisis in the banking sector has hit it even harder. If left unmanaged, they can be left astray and lose the right path," Dhakal said.

He said that the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has also drawn the attention of the government to solve the liquidity problem in the market. He said there was a lack of liquidity in the market as government expenditure was reduced due to delay in bringing the budget this year and reduction of remittance inflows.

Talking about the role of the private sector in the economic development of the country, he said that every mechanism of the state should work in collaboration with the private sector.

"It is clear that the private sector is the main engine of growth and economic growth. Successful businesses grow economically, create jobs and pay taxes that finance various services and investments. The role of the private sector is even greater and more important in developing countries. It creates a large number of jobs, raises funds for investment, and contributes significantly to government revenue,” Dhakal said.