At this time, the country is standing at the crossroads of new hope and doubt. The new government, formed after the movement of the Zenji generation, is trying to end corruption and establish good governance in the country, while the private sector, which was the target of infiltration during the movement, is also trying to rise again. If we look at the history of the last 40 years, it is a pity that the private sector has also become a victim of every movement and rebellion.

}’The private sector not only needs to demand rights and ease, but also need to move forward by being more responsible. It is imperative to be responsible towards the country and society by following the code of conduct that we made two and a half decades ago. ’

In every agitation or demonstration, the private sector and industries and businesses run by the private sector are attacked. This time, the private sector has been hurt even more than the previous agitations. The investment made by the entrepreneur by arriving, borrowing, and taking out loans has been attacked. Industrial establishments, hotels, cable car, shops and private houses of entrepreneurs were also vandalized and torched.

Profit-making has been framed as a big crime. Entrepreneurs don’t just make money. The service is provided. It contributes to the country’s economy and revenue. It creates jobs. It is produced. But all of that was ignored. Only the profit made by the businessman was seen. The intruders reached the bedroom of the entrepreneur. Looting, vandalism and arson.

Making a profit is not a crime

In our country, it is a crime to make a profit. The purpose of a business is to make a profit by providing services. However, this understanding is different. It is because of this difference of opinion that the private sector is frequently attacked. Isn’t it important for the state to create jobs, pay revenue and spread entrepreneurship? If yes, the government should take stern action against those involved in arson, vandalism and looting in the midst of the movement started with a pious purpose.

Security should be guaranteed to the entrepreneurs. Otherwise, it will promote impunity. Criminal psychology flourishes. Therefore, this tendency should not be encouraged under any pretext. Recently, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) organized its second National Economic Debate and urged the government to boost the morale of entrepreneurs, guarantee peace and security and create an environment conducive for carrying out business in a safe manner.

If the private sector collapses, it will not only affect the sector. This will affect production, service delivery, employment, revenue and the overall economy of the country. According to a study conducted by the International Finance Corporation (IFC) and the Federation of Nepalese Federations, the contribution of the private sector to Nepal’s economy is 81 percent. 86 percent of employment. Most of the current exports are produced by the private sector. The contribution of entrepreneurs to income tax is more than 80 percent. Therefore, the voice raised by the entrepreneurs and businessmen is linked to the economic issues of the entire country.

Responsible Private Sector

During the pandemic, we have presented an example of Nepal’s private sector being sensitive, responsible, and resilient. The country had to revise its economic goals when the pandemic brought every sector to a standstill. The court had extended the deadline to pay the revenue. However, the federation urged the private sector to support the government. We paid taxes and were motivated to pay them. As a result, the revenue collection exceeded the revised target. We have been attacked during the recent agitation, but we are sensitive to the overall economic progress of the country.

Even in the current difficult situation, we are working responsibly to give each other confidence and encouragement for the resurgence. We feel that the incumbent government has understood this sentiment of the private sector from within. Somehow, as soon as the private sector suffered losses, customs, insurance and banking facilities were promptly provided at our request. If the implementation of these exemptions and facilities is made faster, it will be a big relief in the reconstruction of the private sector.

Likewise, the Ministry of Home Affairs has issued a circular to all the District Administration Offices to include the Chamber of Commerce and Industry in the District Security Committee. This has given psychological strength to the businessmen. The government should leave no stone unturned to boost the morale of the security mechanisms to prevent such incidents from recurring.

According to a preliminary survey conducted by the federation, there was a physical loss of around Rs 48 billion during the GenG protests. There has been a business loss of Rs 88 billion. However, the National Planning Commission (NPC) is collecting detailed damage data from every house, commercial firm and government agency. Detailed and complete details will follow. There are signs of gradual improvement from the government formed in difficult circumstances. However, if the situation continues to be unfavourable, the losses will increase. It is sure to have an impact on our economic growth.

The World Bank has projected economic growth to be limited to two percent this year. The government needs to play a more parental role to boost the morale of the private sector, which contributes 81 percent to the economy, keeping in mind such projections and the needs of the country.

The state needs to internalize the employment, revenue, infrastructure construction and accountability of the private sector to the society. There is a need to ensure that there is no attack on the private sector. The government needs to bring a private sector protection and promotion program to provide rapid service from all the bodies in an integrated manner for the entrepreneurs and entrepreneurs.

The federation has been consistently raising this issue. This is also what the youth want. It will give positive results if a good governance mechanism can be created with the participation of the private sector to maintain good governance. It is our experience that the Good Governance Commission or the mechanism that is only participatory by the government agencies cannot deliver participatory results. Therefore, it would be beneficial to set up a mechanism with the participation of the private sector.

‘The state needs to embrace the employment, revenue, infrastructure development and accountability to the society created by the private sector. There is a need to ensure that there is no attack on the private sector. ’

Investment Environment and Youth Agenda

Even now, the process of registering a business and paying tax is cumbersome. We have requested for the arrangement of registering the business through the Nagarik App. If not, arrangements should be made to register and submit revenue to the ward office. And the provision of annual renewal of a firm or business that has paid taxes continuously should be abolished. This has also been included in the report of the High Level Economic Reform Commission.

The topic of youth entrepreneurship is very important to encourage entrepreneurship and to stop youth migration. Now the startup policy has come. Grants have been given as defined in the law. But that alone is not enough. The effective implementation of this policy is important to address the issues of good governance, entrepreneurship and employment raised by the youths.

Facilitation of business registration, capital raising, market promotion and exit is important for entrepreneurship. There should be no delay in formulating result-oriented programs for youths by integrating various schemes such as project loan, group loan, integrated market development, use of information technology and AI, data center. Another important aspect of economic development is infrastructure construction. There is also a need for a mechanism to solve the problem of infrastructure being constructed by the public or private sector. Infrastructure construction will not be easy and possible if the government of November 2082 does not show promptness to address the demands including forest, environment and land ownership. It should be ensured that there is no obstruction in the construction and operation of projects approved by the state.

“Nothing happens in Nepal. Domestic capital cannot be invested in big projects. Nepal Development Public Limited (NDP) Company has also been established at the initiative of the FNCCI to dispel the negative narrative that Nepal’s investment is not safe. It will collect internal capital scattered across the country and invest in big infrastructure projects. This is aimed at boosting investors’ confidence and sending a message that big projects can be completed through internal capital mobilization. Due to the recent customs policy adopted by the United States, Indian and other countries are also trying to enter Nepal. The government should not delay when this is the right time to encourage such investments. There is a need to work on the issue of production to marketing in the cycle of agricultural production internally with attracting foreign investment. It is necessary to work in cooperation with the district÷town chamber of commerce and industry and local level in cold storage, market management and transportation.

The bank has more than Rs 11 trillion in liquidity. Investment has not increased. There are many reasons for this. Current capital loan guidance, meticulous surveillance and blacklisting, as well as attacks on the private sector during the recent Genji movement, are just a few. Without these solutions, investment cannot grow. No more investment can come. It is appropriate to have a provision to allow the bank and the borrower to take decisions regarding current capital guidance through mutual discussion. It is equally necessary 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. Even if India can have a mechanism to automatically adjust the tax rates, there is a possibility of stopping illegal imports and increasing demand. None of the parties should forget that efforts of all are the foremost requirements for good governance, lasting peace, stability and prosperity. For this, it is also necessary to ensure an environment conducive for holding elections on time through dialogue and cooperation with all political parties, youth generation and other stakeholders.

In the end, I would like to add a context here: Incumbent Finance Minister Rameshwor Khanal had recently said in a program, “The private sector is a fruit-bearing tree, so it should be conserved by fertilizing it in such a way that it produces more fruits, only then can the nation reap maximum benefits and the country can become prosperous.” This is a good message for the private sector. I think such an acceptable statement coming from the state side as a guardian has also given a message that the country will move forward on the path of prosperity. The entire private sector of the country is waiting for this positive thinking to be implemented.

(From the Economic Policy of the Society of Economic Journalists (SEJON))