I would like to thank the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) for accepting the invitation and being here. Now the country is standing at the crossroads of hope and doubt.
The government is trying to maintain good governance by reducing corruption in the country as per the agitation and demands of the younger generation. The private sector is also trying to shake off the ashes.
It is well known that in every movement or demonstration, the private sector is attacked.
But the private sector has been hurt more this time than in the past. Somehow, an entrepreneur invests by collecting, borrowing, and taking out loans.
It contributes to revenue. Employment opportunities are created. However, the bedrooms of entrepreneurs have been looted. There is a fire in the business.
This incident has forced everyone to look back on themselves. We are also reviewing where we went wrong. And where did society go wrong?
In our country, making profit is a crime. But the purpose of business is to make a profit by providing services. Yes, it is because of this difference that the private sector is attacked. Isn’t it important for the state to create jobs and pay revenue?
If strict action is not taken against the perpetrators of arson, vandalism, and looting, impunity will flourish. It should not be promoted in any name.
The main purpose of organizing this program today is to invite the Prime Minister, Ministers, Chief Secretary, Governors and high government officials to this program and to make efforts to ensure the right of the working class to work safely.
According to a study conducted by IFC and FNF, the private sector contributes 81 percent to Nepal’s economy.
86 percent of the jobs are provided by the private sector. Most of the exports are private sector products. The contribution of entrepreneurs to income tax is over 80 percent.
This important section of the country is trying to get a boost. Nepal’s private sector is strong and responsible. For example, at the request of the FNCCI, we paid the tax and encouraged us to pay the tax to help the government even when the court had given time to pay the revenue during the time of Covid. In the first fiscal year of the beginning of Covid, the revenue collection exceeded the revised target.
This time too, we are sensitive. Even in the current difficult situation, we are responsibly working to give confidence and encouragement to each other for revival.
We feel that the present government has also understood this sentiment of the private sector. Immediately after the damage, customs, insurance and banking facilities were provided at our request after a program organized at the Ministry of Finance.
It is believed that this will help in the reconstruction. It is necessary to implement these exemptions and facilities expeditiously.
A circular has been issued by the Ministry of Home Affairs to involve the Chamber of Commerce and Industry in the District Security Committee at all the District Administration Offices at a time when the entrepreneurs are not feeling safe.
This has sent a positive message. It is necessary to take action against those involved in looting and arson and to increase the morale of the security mechanism to prevent such incidents from recurring. The government should not leave any stone unturned in this regard.
The efforts made by the Prime Minister, the Energy Minister, the Finance Minister, the Industry Minister, the Chief Secretary and the Secretary to resolve the dispute related to dedicated feeder and truckline for about seven years at the request of me and the FNCCI is unforgettable and I would like to express my heartfelt gratitude to all of you for this. Hopefully, this dispute will be resolved soon.
There is a need for more collaboration to increase investment in the country. According to a preliminary survey conducted by the FNJ, the protest caused a physical loss of Rs 48 billion. The private sector has suffered a loss of around Rs 88 billion.
The National Planning Commission (NPC) is complicating details of the damage to every house, business firm and government agency. The federation is cooperating with the private sector in data collection. Details and details will follow.
There are signs of improvement in the current situation. But if the situation becomes unfavorable, this loss may increase. If tourism does not improve, if the supply chain is disrupted again, if there is another agitation, the losses will increase.
The World Bank has lowered its previous forecast for GDP growth to be around two percent this year.
The incumbent government is expected to take special initiatives to boost the morale of the private sector, which contributes 81 per cent to the country’s economy.
It is necessary for the cabinet to pass a resolution of public importance so that the private sector should understand the employment, revenue, infrastructure development and accountability of the society to the general public.
As part of the proposal, I urge the government to pass the Private Sector Protection and Promotion Program to provide speedy service facilities from all the bodies in an integrated manner with necessary security so that there is no attack on the private sector.
The federation is preparing a plan for economic reconstruction and revival. It will include reconstruction, measures to increase the demand that has been low for about three years. I also urge for its implementation. It will also send a positive message to the next generation by showing the contribution and importance of the private sector to the general public.
We want to ask for some other decisions and concessions that will not be spent by the government but will create a business environment. The second is a matter of good governance.
The federation has been consistently raising this issue. This is also the desire of the youth. I urge the Prime Minister to create a good governance mechanism with the participation of the private sector to maintain good governance.
The main agenda of our Annual General Meeting held in April last year was the issue of good governance. A good governance commission or mechanism formed only by government agencies cannot give results. Therefore, we urge the government to immediately set up a mechanism involving the private sector.
According to the Business Environment Survey conducted by FNCCI last year, one has to go to 4 to 7 places to register small and medium enterprises. It should be reduced.
We have been requesting for the provision of registering a business through the citizen app. If not, there should be an arrangement to register and submit revenue to the ward office. If the tax has been paid continuously, the provision of renewal should be abolished.
These and similar issues are also mentioned in the report of the High Level Economic Reform Commission. I would also like to remind here that the proposal of the commission was put forward by the Federation through a similar debate program.
Similarly, the issue of youth entrepreneurship is very important. The start-up policy was introduced at the initiative of the federation. Start-ups were defined in the law. Now the grant has started.
But that’s not enough. The strong implementation of this start-up policy will be important in addressing the issues of good governance, entrepreneurship and employment that the youths are raising in the current situation of the country.
Launch a special youth entrepreneurship development program immediately. The programme can be started in collaboration with the government and FNCCI’s Youth Entrepreneurs’ Forum. The need of the hour is to facilitate business registration, capital collection, market promotion and exit.
Project loans, group loans, integrated market development, use of information technology and AI, data centers, among other schemes should be integrated and result-oriented programs should be prepared for the youth. A steering committee can be formed and work can be done immediately.
Another issue is the speed of infrastructure construction. There is also a need for a mechanism to solve the problems of infrastructure construction by the public and private sectors.
If the government does not show urgency to address the local demands, including forest, environment and land rights, then work will not be possible.
It is necessary to ensure that there is no obstruction from the local, provincial center or any group in the construction and operation of the projects approved by the state.
There are also complaints that due to unnecessary obstacles at the project site, the demand for some small projects is more than the cost. Therefore, the state should guarantee full security in the construction and operation of such infrastructure projects.
Nepal Development Public Limited (NDP) has been established with the participation of CNI, Chamber and Non-Resident Nepali Association members and other businessmen to break the negative narrative that nothing happens in Nepal and nothing can be done with Nepal’s investment.
It will collect internal capital scattered across the country and invest in big infrastructure projects. This will increase investors’ confidence and send a message that big projects can be done through the mobilization of internal capital.
There are also some issues that need to be addressed immediately by the members of the federation and the private sector. For example, subsidies on exports have been stopped. It is also said that this grant has been stopped because Nepal is being upgraded from the least developed country.
On the issue of upgradation, the federation has been consistently saying that it is only artificially rich. Bangladesh had on September 25 requested the United Nations to re-evaluate the upgrade.
I have heard that Nepal is also trying to do so. The deadline for upgradation should be extended by at least three years and export subsidies should be introduced.
Due to the US customs policy, the investment of Indian and other countries is trying to come to Nepal. We would like to urge the government that this is the right time to encourage such investments.
In the cycle of agricultural production, work should be done from production to marketing. We want to work jointly in cold storage, market management and transportation in collaboration with the local chamber of commerce and local level.
It has been decided to gradually remove the taxpayer service center and provide PAN number from the ward office. Immediately after the formation of the new government, we had also suggested to the Economic Reform Commission for making arrangements that all the work related to revenue and business registration and liquidation can be done from the ward itself.
It is better not to close the service center until all the services are resumed. We urge the taxpayers to have a smooth payment of tax.
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is probably the largest network after the government. There are chambers of commerce in all the districts and most of the municipalities. These agencies are capable of providing taxpayer services including facilitating the distribution of PAN cards. In the past, the associations have been providing this facility. The federation wants to cooperate in this regard.
There is about Rs 11 trillion worth of investment in the banks. The lack of interest in investment is also due to the current capital loan guidance and efficient monitoring and blacklisting.
It is appropriate to allow the bank and the borrower to decide on the current capital guidance through mutual discussion. The loan classification and blacklisting system should be revised, including close surveillance.
Illegal imports are being institutionalized in the border areas. Joint efforts with India are needed to control it.
Non-tariff barriers with India, customs rates on iron rods and other issues are also issues of concern for our members.
We will again draw the attention of the government in writing on these issues. Initiative is necessary for the systematic development and expansion of real estate and stock market.
Export capacity also depletes after a certain period of time. Such as Nepal’s wasted products such as gravel, stones, sand, etc.
Once India and Bangladesh have reached a stage of development, there may be no demand for it. Therefore, there will be no destruction of the environment, there will be no harm to the country and the provision of exporting through a company that pays revenue by registering legally will help in earning foreign exchange.
We have urged the government to reduce the rate of income tax and VAT as there is low demand in the market. If this issue can be taken positively, then the purchasing power of the general public can be expected to increase and the demand in the market will increase.
By creating a mechanism to automatically adjust the tax rates with India, the demand will be stopped and the demand will increase.
We also vow to move forward by becoming more responsible to the private sector. The FNCCI has already endorsed the Business Code of Conduct in 2058 BS through its Annual General Meeting. Along with following this, it is also our responsibility to do business by including new topics to understand the responsibility towards the country and society.
Everyone’s efforts are necessary at this time for lasting peace, stability and prosperity. For this, an environment conducive for holding elections on time is ensured through dialogue and cooperation with all political parties, youths and other stakeholders.
The government is also trying to do so. We urge the private sector to create an environment conducive for holding elections on time for peace, stability and prosperity. The private sector is ready to cooperate and cooperate in this regard.
I would like to mention an incident here. In a recent program, the Honorable Finance Minister had said that the private sector is a fruit-bearing tree, so it should be protected in such a way that it produces more and more fruit, only then the nation can reap maximum benefits and the country can become prosperous.
Therefore, the entire private sector of the country expects to be protected in the same way during this tenure of the honorable Prime Minister.
Thank you
प्रतिक्रिया दिनुहोस्