Chamber Welcomes Realistic Nepal Budget for Economic Stability & Private Sector Growth.
31st May 2025, Kathmandu
Nepal Chamber of Commerce President Kamlesh Kumar Agrawal said the budget for Fiscal Year 2082/83 is balanced, growth-oriented, and realistic, despite the tough economic environment.
Chamber Welcomes Realistic Nepal Budget
He shared these remarks during a post-budget discussion held in Kathmandu. The program was organized by the Nepal Economic Journalists Association (NEJA/NAFIZ).
Focus On The Private Sector And Investment
Agrawal praised the government for prioritizing private sector needs. According to him, the current economic slowdown has hurt businesses across the country. Yet, the budget tries to address this by promoting investment and trade.
He noted that the budget avoids making unrealistic promises, which were common in the past. “This year’s budget reflects what the government can deliver,” he said.
Agrawal highlighted that the budget aims to simplify trade procedures, encourage industrial growth, and make Nepal an attractive destination for investors.
IT And Innovation Get Priority
The Chamber President expressed happiness over the focus on information technology and digital innovation. He said Nepal needs to prepare for the future, and the budget shows some intent in that direction.
He welcomed the plan to support tech startups and innovation hubs. Agrawal believes this will help develop local talent and reduce dependence on foreign solutions.
Youth Loan Scheme: A Positive Step
Agrawal particularly welcomed the concessional loan policy for young entrepreneurs. The budget allows youth to apply for loans up to NPR 2 million at just 3% interest.
“This is a good initiative. It can encourage youth to start businesses instead of going abroad,” he said.
According to him, Nepal loses a large number of youth to foreign employment every year. Policies like this may help keep them home and create jobs.
Tourism Sector Needs More Support
The budget includes some support for tourism, and Agrawal found it encouraging. However, he pointed out a missed opportunity.
He said removing VAT from airline tickets would have given the sector a bigger boost. “That would make traveling cheaper for tourists and help the industry recover faster,” he suggested.
Still, he appreciated the government’s overall attention to tourism as one of Nepal’s key industries.
Working Capital Loans Can Help The Economy
Agrawal stated that the budget supports ongoing loans and working capital for businesses. He believes this move will help small and medium enterprises survive during tough times.
He explained that cash flow remains a major issue. Supportive loan policies may allow businesses to stay open, pay workers, and contribute to the economy.
Riverbed Mining And International Standards
The Chamber President also spoke about riverbed material extraction. He said the budget proposes new policies based on international standards.
These policies, he believes, will bring more clarity and fairness to businesses in the sector. He called for proper regulation to ensure both sustainability and ease of doing business.
Export Challenges Still Unresolved
Despite the positive steps, Agrawal said problems in exports, especially to India, remain. He emphasized the need for better coordination with neighboring countries to remove trade barriers.
He said Nepal must improve its export infrastructure and logistics to make local products more competitive.
Domestic Revenue Generation Is Key
Agrawal also discussed the issue of domestic revenue collection. He stressed that Nepal must find sustainable sources of income to fund the budget.
Depending too much on foreign aid and loans, he said, is not a good long-term strategy.
Foreign Aid Reduction Is A Concern
He warned that foreign grants and aid may decline due to global geopolitical tensions. This could have a serious impact on Nepal’s economy.
Agrawal suggested that the government and central bank prepare for this by adjusting monetary policy and creating backup funding plans.
Monetary Policy Should Support Business
He called for the upcoming monetary policy to support businesses that are struggling. According to Agrawal, restructuring and refinancing are necessary for firms hit hard by the economic slowdown.
He said many businesses are in survival mode, and government help is essential.
Conclusion: A Step In The Right Direction
In conclusion, Agrawal described the budget as a step in the right direction. He praised its balance between ambition and reality.
“This is not a perfect budget, but it tries to solve real problems. It focuses on investment, entrepreneurship, and private sector recovery,” he said.
He also called on the government to ensure effective implementation. Good policies alone will not help if they are not followed by action on the ground.
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