Government should boost morale of private sector: FNCCI President Dhakal

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has stressed that the first step to addressing the current economic challenges is to boost the morale of private sector and public.

FNCCI Executive Committee members met with Finance Minister Barsha Man Pun at the Ministry of Finance in Singhadurbar, Kathmandu, on Thursday. During the meeting, FNCCI President Dhakal drew attention to the current economic situation and called for the government to increase capital expenditure and extend re-loan facilities to funnel funds into smaller towns and villages.

He noted that due to issues within cooperatives and microfinance, funds have not been reaching small business owners and the general public.

FNCCI President Dhakal asked Minister Pun to start the process of paying outstanding amounts to builders and construction entrepreneurs. He used the business continuity loans taken during the Covid 19 pandemic as an example of Nepali businesspersons' responsibility and emphasised the need for the government to trust them.

He championed the freedom of private sector, from large industries to village grocery stores, and urged the government to avoid harassing, apprehending, or discouraging businesspersons, and instead, focus on boosting their morale.

President Dhakal also informed Minister Pun about the increase in revenue achieved by apprehending businesspersons during a period of low revenue. He brought to the Finance Minister's attention that the Office of the Auditor General is investigating and penalising matters that were resolved by the Inland Revenue Department four years ago.

He briefed Minister Pun about the respect system being promoted by the private sector. He explained that if the private sector, which contributes 81% to the economy and 87% to employment, is treated with respect, it will further boost their morale. He advised the government not to hesitate in spending and suggested that even though these might seem like minor issues, capital expenditure will invigorate all entrepreneurial businesses across the country.

President Dhakal also emphasised to the minister that there should be consistency in the economic agenda, regardless of the party. He noted that since the economy is a complex matter, the commitment of all parties is necessary to address the economic problems.

He warned that problems in banks and financial institutions (BFIs) would increase the complexity in the economy and urged them to understand its sensitivity. He mentioned that misleading propaganda is being spread that BFIs do not have to repay their loans and advised the government to be aware of this.

During the meeting, Finance Minister Pun assured that he would work in collaboration with the private sector and move forward. He also stated that the government is committed to progressing in partnership with the private sector.

Minister Pun reassured that no community will be treated as criminal. In response to Dhakal's concern about detentions in the private sector, Minister Pun stated that coordination will be done with the relevant agencies to end practice of detaining businesspersons without completing the investigation first. He expressed his belief that while wrongdoers will be punished, a single mistake should not tarnish the reputation of an entire community. Minister Pun affirmed that the state is an entity that provides security and service to the citizens and assured that entrepreneurs will not be discouraged. "This is my responsibility," Minister Pun declared, "I will not let people lose hope."