Private sector urges FinMin to prioritise industrial, investment promotion

KATHMANDU, MAR 22 -

Two leading private sector bodies — Federation of Nepalese Chambers of Commerce and Industry ( FNCCI ) and Confederation of Nepalese Industries (CNI) — on Thursday urged the newly appointed Finance Minister Shankar Prasad Koirala to accord high priority to industrial and investment promotion for economic development.

In separate meetings held at the Finance Ministry, they said the private sector has high expectations from Koirala, who closely worked with them in the past, to overcome existing problems facing the economy.

The FNCCI delegation was led by its officiating President Bhaskar Raj Rajka-rnikar, while the CNI team was headed by its President Narendra Kumar Basnyat.

Koirala, who also holds the commerce and industry portfolios, was urged to create a business friendly environment and adopt policy and programmes to boost the private sector confidence.

During the meeting, Karnikar said failures to bring timely full budget in the past had visible impacts on development activities. He said deteriorating rule of law situation has also demoralised the private sector.

The private sector informed Koirala that the ongoing load-shedding has adversely affected industrial output and decreased competitiveness of domestic products. “Labour unrest has become another big challenge,” Rajkarnikar said.

In another meeting, CNI President Basnyat said the country’s investment climate has been deteriorating due to the protracted political transition. “Amid gloomy business environment, we are delighted to see an experienced bureaucrat leading the Finance Ministry,” Basnyat said.

Both FNCCI and CNI welcomed the minister’s commitment to bring a full budget for the next fiscal year. FNCCI representatives said they have started collecting suggestions for the budget from different districts.

The business community urged the minister to bring policies and programmes that will be in favour of export-oriented industries. Other agendas raised by the FNNCI include development of power transmission line, formulation of new Labour Act to create business friendly environment, increase in incentives provided to special export-oriented industries, effective programmes to end load-shedding and timely budget presentation.

Responding to the FNCCI delegation, Minister Koirala said the government’s first priority will be holding the Constituent Assembly election and increasing investment for economic development.

“The government will accord high priority to export-oriented industries to substitute imports,” Koirala said, adding the government is committed to boost the private sector confidence.

He urged the private sector to suggest the government on how to increase the number of product-oriented industries so that country could be self-reliant in its own production.

Koirala, however, expressed concerns that the country was heading towards “trade-led economy” instead of “industry-led economy”.

Source: The Kathmandu Post