PM Balen Shah: Private Sector Will Remain in the Driving Seat of the Economy

Prime Minister Balen Shah held his first formal meeting with top industrialists and business leaders since taking office, offering reassurance amid a sluggish economy and a declining business environment. The two-hour special discussion took place in the Prime Minister's office with representatives from three major private sector umbrella organizations: the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI), and the Nepal Chamber of Commerce. Following the dialogue, business owners expressed that their low morale had improved significantly.

According to Kamlesh Agrawal, President of the Nepal Chamber of Commerce, Prime Minister Shah clarified the government's policy to keep the private sector in the "driving seat" as the main engine of the economy. The Prime Minister noted that reaching the country’s target of a 100 trillion economy and achieving a 7% economic growth rate would be impossible without the cooperation of the private sector. Instead of just highlighting problems, he urged business owners to bring forward practical solutions. To address these challenges, the Prime Minister promised to form a permanent committee composed of experts and business representatives.

During the meeting, industrialists raised concerns about recent arbitrary arrests and crackdowns on business owners conducted under the guise of investigations. In response, Prime Minister Shah stated that the government has no intention of terrifying the private sector. He emphasized that detaining entrepreneurs does not solve problems and affirmed that the government is committed to creating a favorable industrial environment rather than making arrests.

Additionally, Rajesh Kumar Agrawal, the outgoing President of CNI, requested fast-track adjustments to land ceiling regulations to encourage investment, while CNI Director General Dr. Ghanshyam Ojha suggested moving public institutions toward a public-private partnership model. The Prime Minister responded positively to these suggestions. Business leaders also called the Prime Minister's attention to the central bank's tight policies and potential hurdles in implementing the upcoming budget.