Kathmandu. Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has said the amendment to the Banks and Financial Institutions Act (BAFIA) would affect nepal’s economic activities.

He was speaking at a programme on the financial and monetary situation of the country organized by the Nepali Congress Financial Institution Coordination Department in Kathmandu. He said that if the amendment proposal to amend the Act is passed as it is, it will have a serious impact on economic activities.

He was of the view that the issue should be taken seriously when the proposed bill to amend the Act related to BAFIA proposes to separate bankers and industrialists. “It is a matter of separating businessmen and bankers. This can cause problems in the economy. On the one hand, 51 percent of the shares will be given to the founder to make the promoter accountable. Moreover, it is defined as an affiliate party. According to this arrangement, if investors with more than 1 percent shares are not able to take loans, then there is a risk of closure of all the industries,” dhakal said. Similarly, he said that there is no alternative to encouraging the private sector for economic development.

Dhakal said the private sector has been encouraged by the formation of a high-level economic commission as per the recommendations of the Federation, amendment of 30 different laws as per the commission’s suggestions and giving priority to the private sector in the budget.

“We have been saying that policy reforms and investment-friendly environment are necessary for the economic prosperity of the country. The efforts of the government comprising the Nepali Congress, the main constituent of the current ruling coalition, are welcome. The budget for the fiscal year 2082/83 BS has pledged to give priority to economic reforms considering the private sector as the driver of the economy. The Federation is optimistic and excited by this,” he said.

Stating that nepal has enough potential, the roadmap for economic prosperity can be drawn from these possibilities, said Dhakal, arguing that the country should move from negative thinking towards positivity. “Now the government has made many policy reforms, we have the highest remittance in history, foreign exchange reserves are good, bank interest rates have come down, in this situation there is an investment environment. All this should be taken positively,” he said.

He also stressed the need for internal and external capital mobilization for the development of the country and said that a Nepal Public Limited company worth Rs 10 billion has been established under the leadership of the Federation with the intention of mobilizing internal capital for the development.