DPM Paudel meets FNCCI delegation; pledges to boost private sector confidence 

KATHMANDU: Newly appointed Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has said that the government will focus on building the confidence of not only the general public but also the private sector. 

In a meeting with a delegation of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) today, Minister Paudel mentioned that there are many economic issues that need to be addressed, but the most important is to build the confidence of the private sector. 

During the meeting, Deputy Prime Minister Paudel urged the business people to carry on with their businesses without any apprehension.

He said he is aware of the decline in market demand along with production and exports but expressed confidence in finding solutions. Minister Paudel reiterated the government's commitment to address all the issues such as dedicated feeder and trunk lines, as well as delays in payments to construction contractors. 

Economic recovery tied to private sector morale: FNCCI President Dhakal

During the meeting, FNCCI President Chandra Prasad Dhakal echoed the concerns about the current state of the economy. He emphasised that economic recovery hinges on boosting the morale of private sector and called for closer collaboration between the government and private sector to improve the economy.

He highlighted the lack of coordination among economic bodies and proposed the establishment of an economic reform commission or a similar mechanism involving private sector participation to improve the economy.

Dhakal further urged Minister Paudel to promptly address the dedicated feeder and trunk line issue, which has significantly impacted industries and manufacturing capacity. The contraction of the economy has also affected employment generation. While official data from Nepal Rastra Bank indicates 4.17% inflation rate, Dhakal pointed out that the actual rate has been closer to 7% since the onset of Covid 19 pandemic. Consequently, the purchasing power of people has decreased, leading to reduced market demand. Dhakal recommended that Minister Paudel introduce policies to stimulate demand and promote economic activity.

He informed Minister Paudel that despite lowered interest rates on loans, industrialists and entrepreneurs remain hesitant to invest. Remittances have accumulated in banks and financial institutions (BFIs), indicating that low interest rates alone do not drive investment decisions.

Dhakal shared with the Deputy Prime Minister and Finance Minister Paudel that both established businesses and new entrepreneurs are hesitating to invest due to wrong policies adopted in the past. He called for creating an investment-friendly environment through policy reforms.

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