Keep your promises, private sector tells new government

KATHMANDU, FEB 11 -

With two political parties, said to be pro-market, now forming a coalition government, the private sector has hoped the parties will adhere to what they promised in their poll manifestos in when it comes to economy.

The private sector believes the Nepali Congress-CPN (UML) coalition will provide the much-needed political stability, enabling them to focus on new investment and business expansion.

The private sector representatives, however, said the Sushil Koirala-led coalition can do well only if it brings together all the political forces and moves ahead with the economic agendas mentioned in their poll manifestos.

In its election manifesto, the NC had presented an ambitious target of 8-10 percent economic growth within four years and pledges like ending load-shedding within three years and taking industrial growth rate to 12 percent. The CPN-UML had announced generating 300,000 jobs every year. Suraj Vaidya, president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI), said the beginning of the government formation process has created a positive vibe in the private sector and that the new government should at least live up to their manifested promises. “The private sector is eager to support the government if the coalition partners fulfil what they have promised in their election manifestos,” said Vaidya.

One of the major concerns of the private sector in the new government is the selection of ministers for key portfolios related to the economy. “The coalition should have people with sound knowledge on business and economy in portfolios such as finance, industry, energy and commerce,” said Vaidya.

Private sector representatives agree that the new government’s main task is to draft constitution within a year, but they say the government should equally focus on economic agendas. “NC has made a commitment that there will be no bandas and strikes. Small initiatives like this will have a big impact on the economy,” said FNCCI Vice-president Pradeep Jung Pandey.

Hari Bhakta Sharma, vice president of the Confederation of Nepalese Industries (CNI), said policy is more important than political parties and the new government should realise this fact. “Several Acts are now lying in the parliament. They should be enacted at the earliest,” he said.

Sharma said the NC, which has committed to end load-shedding in industrial areas within two years and across the country within three years, should be able to do so to prove itself. “We have already missed a lot of opportunities and we don’t have time to miss more,” he said, adding the private sector should give the benefit of doubt to the Koirala-led government.

The private sector representatives are unanimous on timely promulgation of the constitution.  They say almost all political parties have promised drafting constitution within a year and they have to make sure it will be done within committed time. “Constitution making should be the major focus of the upcoming government,” said Upendra Poudel, vice president of Nepal Bankers’ Association. “However, the government should come up with timely budget and create confidence in the market. Once this happens, all the indicators will start moving up.”  

IME Group Chairman Chandra Prasad Dhakal said the new government must work on policies aimed at attracting foreign investment. “The share market has already started reacting positively,” Dhakal said. “But there is a need for strengthening the Investment Board and amending and formulating Acts to attract foreign investment.”


What parties had committed in their election manifestos

• Nepali Congress
• 8-10pc economic growth in four years
• Market-oriented economy with public welfare programme
• Ending load-shedding within three years
• 5,000MW additional electricity in five years
• Punishment to those seeking donations
• 12 percent industrial growth rate
• Rail, airports and roads as per Asian standard
• International Airport in Pokhara, Janakpur, Bhairava, Dhangadi
• Construction of China-Kathmandu-India railway within 10 years

Source: The Kathmandu Post