KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged political parties to prioritise the protection, promotion and boosting the morale of the private sector in their manifestos for the upcoming elections.
At the press conference on ‘Private Sector in the Manifesto’ organised here today by FNCCI, political parties have been drawn attention on the urgent need to improve the economy, stating that when the private sector, which plays a decisive role in job creation, revenue growth, infrastructure and capital formation, is neglected, the overall economy begins to head towards further crisis.
FNCCI president Chandra Prasad Dhakal, emphasised the need for political parties to prepare manifestos in a way that boosts the morale of entrepreneurs and business community, who are the country’s main employers, service providers, infrastructure builders, tax contributors, and wealth creators.
He said that expanding investment is not possible without ensuring the right to carry out one’s profession and operate business without any hindrance, respect for constitutionally guaranteed natural rights related to property, and policy stability.
It was emphasized on the occasion that FNCCI, the umbrella organization of the business community in Nepal, also believes that due to the constitutional framework, geopolitical situation, traditional political ideologies and debates on social justice, most political parties appear uncertain about liberal economy, the role of the private sector, and socialist-oriented policies.
The FNCCI has stated that if the parties fail to stand in a clear direction on the economy, the expectations of the younger generation (Gen Z) regarding good governance and sufficient opportunities for employment and self-employment cannot be fulfilled. In this context, FNCCI has suggested adopting a liberal and inclusive economic policy based on innovation taking into account Nepal’s needs and the global environment.
The suggestion also mentions that it is necessary to ensure access to the economy and means of production for all classes, genders and communities through policy and technology facilitation, as well as arrangements for reservation for economically disadvantaged communities.
Likewise, FNCCI has emphasised implementing an innovation-oriented, liberal, inclusive economy based on private-public partnership in the coming days, particularly noting that the three-pillar economic policy and socialism-oriented concept have influenced foreign investment.
Call to boost morale of private sector
According to the FNCCI, recent attacks on the private sector during the Gen Z movement, vandalism, and arson at industries, businesses, and entrepreneurs’ private residences have weakened the morale of the private sector. It claims that the protests on September 8 and 9 caused direct physical damage worth around Rs 3.6 billion and losses amounting to nearly Rs 8 billion to the private sector alone.
Considering this situation, the FNCCI has proposed the implementation of a ‘Private Sector Protection and Promotion Plan.’ Under this, it has been suggested to establish a Directorate General for Industrial and Commercial Security under the Armed Police Force at the centre and units in each district to ensure the security of industrial and commercial establishments and entrepreneurs’ private property.
The FNCCI has urged the parties to enact legal provisions that declare industrial and business establishments as special importance areas or peace zones and prohibit violent activities, classify industries as highly sensitive based on investment and employment and provide security accordingly, arrange rapid response teams and vehicles, and adopt a zero-tolerance policy towards attacks on private property and residences.
Similarly, it has called for including in the special good governance programme manifesto the delivery of quality public services and addressing the increasing foreign migration, and the public frustration, emphasizing that these are directly linked to good governance.
It is suggested that a ‘Business’ icon be added to the Citizen App and that all processes from business registration to closure be made completely ‘digital’ within one year.
Likewise, the Federation demands that the provision for business renewal, in cases where taxes are paid and the business is continuously operational, be abolished from the upcoming fiscal year, and that until an integrated automated system is implemented, small and micro entrepreneurs be allowed to register and pay revenue at the local ward level.
Similarly, it has been requested to include in the manifesto issues such as establishing an integrated mechanism for data storage, security, and exchange, providing loans up to Rs 10 million without collateral on a risk-sharing basis, offering concessional loans to families sending legitimate remittances, and promoting a small entrepreneurs portal and e-commerce.
Parties urged to announce Investment Promotion Decade
FNCCI has proposed the declaration of the ‘Investment Promotion Decade’ to attract more domestic and foreign investments in the context of limited mobilization of internal funds and shrinking foreign assistance.
Likewise, the recommendation includes formation of a high-power Investment Promotion and Protection Board by merging the Investment Board of Nepal and Department of Industry to implement the bilateral investment agreements even by bringing about reforms in contemporary laws including the Public Procurement Act.
Prioritizing production-based industries, import replacement, incentivizing production-based industries and implementation of the industrial corridor and open special economic zones should be advanced in the country, according to the Federation.
The Federation has called for the revision to the laws for the implementation of the National Startup Entrepreneur Policy, 2081 and ensure subsidy in all startups.
The tourism sector should be given the status equal to the industry and tourism industry should be facilitated to ease the tourist arrival in the country, the recommendations stated.
Likewise, the Federation has called for stable, simplified and competitive tax system and reducing the tax in the production-based industries, as well as ensuring an umbrella act for non-tax revenue. (RSS)
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