Kathmandu. KATHMANDU: The private sector has urged the government for security, coordination and cooperation for the reconstruction, reconstruction and revitalization of the economy.

During the discussion with Prime Minister Sushila Karki on Sunday, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, said that the government was expecting necessary support and security from the government to create an environment where the private sector can work in a dignified manner.

“We are ready to cooperate with the government as well,” Dhakal said. He said that the attack on the private sector during the agitation could be seen as the importance of the private sector could not be understood.

According to a study conducted by the Federation of Nepalese Chambers of Commerce and Industry (IFC), the private sector contributes 81 per cent to the country’s economy while 86 per cent of the jobs are provided by the private sector.

He also urged the government to establish a continuous dialogue mechanism between the private sector and the government for restoring the economy and maintaining good governance.

The private sector has demanded action against the culprits as the private sector has suffered huge loss of life and property due to the infiltration of the youth during the movement. The representatives of the private sector drew the attention of the government to the discussion that if action is not taken, a situation of impunity will be created and private investment will be further discouraged.

FNCCI president Dhakal said that the FNCCI has been collecting damage details across the country and the preliminary estimate is that the private sector has suffered damages worth Rs 80 billion as per the data and information available so far. Particularly, the industries and small businesses that have suffered major losses and some businesses outside the capital have not been reported and some duplication has also been seen. The Federation has been carrying out a survey across the country to provide the details of the damage as soon as possible.

During the discussion, Chairman Dhakal urged the government to provide loan restructuring and re-scheduling facility to the agitating entrepreneurs and to provide exemption on income tax to attract investment. The federation has suggested that the rate of value added tax can also be adjusted to increase demand.

Stating that the younger generation wanted efficient government services, Dhakal said all should take initiative to make the maximum use of information technology and carry out good conduct. The federation has also urged the government to provide interest concession and waiver in customs and other fees to the affected entrepreneurs to bring goods required for the construction of new structures. The Federation has been continuously demanding that services including registration and cancellation of business can be availed from the citizen app and the compulsion to renew it after paying tax should be removed.

Chairman Dhakal also drew the attention of the government that the amount under social responsibility can be used for reconstruction and it can be shown as expenditure and other facilitation is necessary.

During the discussion, Chairman Dhakal drew the attention of the government that Nepal was preparing to be upgraded from the least developed country by 2026 but this loss could create problems due to the lack of preparation.

Bangladesh, which has been facing similar problems, is trying to postpone the decision to upgrade because it will be deprived of trade facilities. The federation has suggested that Nepal should also request the United Nations to postpone the decision of the upgrading right now.

The FNCCI has suggested that the amount could be used for reconstruction after reviewing the budget as well as the need for tax exemption, production-based relief and concessional loans for small and medium enterprises.

During the discussions, the entrepreneurs drew the attention of Prime Minister Karki that the current capital loan guideline, deferred refinancing for at least two years, interest subsidy and other financial concessions could be provided immediately.