KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has said that its serious attention has been drawn towards the remarks made by Minister for Industry, Commerce and Supplies Gauri Kumari Yadav regarding the supply of LP Gas to industrialists and entrepreneurs.

“It is highly objectionable, irresponsible and unfortunate to blame all the industrialists and businessmen at a sensitive time when the problems seen in the supply of gas should be resolved and the statement that the gas supply will not be easy until the industrialists are returned,” the federation said.

The FNCCI has said that such statement from the minister would weaken the morale of the industrialists and entrepreneurs who are involved in relief, rescue and supply of essential goods by joining hands with the government during the time of disaster.

Even during natural disasters, epidemics and other crises, the private sector has been continuously contributing to the relief, rescue, rehabilitation and to ease the supply of essential goods and services. In such a situation, the statement of publicly defaming the private sector which has been supporting the government will have a negative impact on the morale of the industrialists and entrepreneurs and may also affect the trust between the government and the private sector.

The federation is of the clear view that the number of gas industries is more than the requirement, the industry should be scrapped, or that more than two gas industries are not necessary. The federation has been of the view that the government should play the role of guardian, regulatory, facilitator and coordinator effectively rather than operating the industry itself. The federation has reminded that the main responsibility of the government is to create a competitive environment by encouraging the private sector, to ensure the security of investment and to remove obstacles in the operation of business.

The federation has also taken serious note of Minister Yadav’s statement that there is undue collusion between the bureaucracy and the private sector during the formulation of laws and bills. The federation is of the view that it should not be appropriate to portray the suggestions and participation of the private sector as undue influence or collusion. The federation believes that while formulating any policy, act, rules and laws, decisions should be taken on an objective basis after adequate discussion and consultation with the stakeholders who are directly or indirectly affected by it.

“The minister’s statement that it is difficult to operate industries in Nepal only confirms the challenges that exist in the operation of industries and businesses,” the FNCCI has stated, adding, “The government’s priority should be to make policy, administrative, financial and infrastructural reforms by identifying the problems in establishment and operation of industries.” ”

Instead of blaming the private sector, the government should focus on removing obstacles to the establishment and operation of industries, creating an investment-friendly environment, reducing the cost and carrying out necessary reforms for production and employment expansion, the federation claimed. The federation reminded that the private sector has been raising the issue for a long time that the domestic industries are finding it difficult to compete with the imported finished goods due to the lack of sufficient difference between the customs duty on the import of raw materials and the customs imposed on the import of finished goods.

The federation believes that there should be at least two levels of customs duty on raw materials and finished goods in order to encourage domestic production, import substitution and export promotion. Also, such policy reforms are necessary to enhance the competitiveness of domestic industries.

The federation has stressed that it is not enough for the government to be strong but also to strengthen the trust between the government and the private sector. The federation believes that mutual respect, trust and continuous dialogue are necessary to resolve the problems as the government and private sector are not competitors of each other but partners in the economic development of the country. The federation has reminded that the private sector is not a competitor of the government, but a partner in economic development. “Industry, production, employment and economy can be advanced only by taking the industrialists and businessmen into confidence,” the federation said.

The FNCCI believes that in this sensitive situation to take Nepal’s economy out of the current crisis, cooperation is needed instead of blame, trust rather than mistrust and dialogue rather than confrontation. The FNCCI has also stressed the need to change the way the government, political parties, administrative machinery, and the general public look at the private sector, think and understand the private sector, and it firmly believes that unless this happens, there will be no economic progress, progress and social transformation of the country.