PM consults private sector to improve economy

The government has started holding discussions with stakeholders including the private sector, donor agencies, development partners and regulatory bodies after expected improvement was not seen in economy despite government's positive interventions.

The government is consulting stakeholders as market could not remain vibrant despite different reform measures to accelerate economy.

Prime Minister Pushpa Kamal Dahal 'Prachanda' on Monday met with the representatives of different umbrella organizations of the private sector to seek their suggestion to bring the economy on track.

PM Prachanda invited the representatives of Federation of Nepalese Chambers of Commerce and Industries (NFCCI), Confederation of Nepalese Industries (CNI) and Nepal Chamber of Commerce (NCC).

On the occasion, the private sector leaders suggested that boosting the morale of the private sector was imperative to improve the country's economy.

"Confidence of general people has decreased and morale of businessmen has gone down. The problem has surfaced after both government and private sector could not increase the investment," the private sector's representatives said.

"Lack of demand in market despite increased remittance inflows and arrival of tourists has added challenges to entrepreneurs," they added.

They pointed out that the financial institutions have not been able to flow funds due to limited capital expenditure, high interest rate and some arrangements in the monetary policy.

The private sector demanded immediate payment of dues of the construction entrepreneurs, policy-level stability and environment conducive to attract foreign investment.

The organisations also suggested that the government should encourage that private sector to bring in money from abroad by conducting country's sovereign credit rating.

Regular supply of power at industrial corridor, participation of private sector in construction of transmission lines and opening the land plotting are other demands of the private sector.

The private sector also asked the government to make Bilateral Investment Promotion and Protection Agreement in the context that countries from the Middle East region are willing to invest in Nepal.

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