KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has presented its recommendations to the government for inclusion in the Policy and Programs for the fiscal year 2025/26.

FNCCI President Chandra Prasad Dhakal delivered the suggestions to the government through the Minister for Industry, Commerce, and Supplies, Damodar Bhandari.

In its submission, FNCCI stressed the importance of the government not only formulating but also effectively implementing necessary regulations and continuing with policy reforms. The Federation acknowledged some progress in these reforms but emphasized that further work is needed.

One of the major proposals is to enhance the use of technology in business operations, including processes like registration, renewal, tax payments, and deregistration. FNCCI recommended that all business-related services be made available online, incorporating a “business icon” in the Citizen App for easier accessibility.

FNCCI also suggested making the government service system more efficient through the ‘smart’ service concept and urged the introduction of a specific policy to boost foreign investment.

“Currently, foreign investment in Nepal is only 0.2 percent of GDP. To increase this figure, a targeted investment campaign should be launched. Furthermore, the Office of the Investment Board and the Department of Industries should be merged and restructured, while ensuring the full implementation of a ‘one-stop’ service center,” FNCCI proposed.

Additionally, FNCCI called for simplifying the investment process, ensuring that investors do not need to visit multiple offices after submitting required documents. The Federation also highlighted the slow pace of investment despite Nepal’s banking system holding Rs 600 billion in potential investment funds.

“Although interest rates have decreased by three percent in the last three months, investment disbursement remains sluggish. We recommend reviewing and postponing the capital loan guidelines introduced by Nepal Rastra Bank two years ago for at least two years,” FNCCI stated in its recommendations.

The Federation also urged for an immediate policy to promote Nepali agricultural products and the export of water to Gulf countries. To support this, FNCCI proposed establishing cold storage, X-ray machines, and warehouse facilities at airports to facilitate exports, taking advantage of the 12 daily flights from Nepal to the Middle East.

Finally, FNCCI suggested gradually reducing taxes by five percent over the next five years to encourage the growth of manufacturing industries, while also recommending a reduction in income tax rates and an increase in the tax exemption limit to foster further economic development.