28th April 2025, Kathmandu
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has outlined several key reforms aimed at boosting Nepal’s economic growth.
FNCCI Nepal Economic Growth Reforms
At a recent meeting with government officials, FNCCI President Chandra Prasad Dhakal emphasized the need for a more stable and open economy to foster business and investment. He called for the upcoming national budget to focus on increasing private sector involvement and improving governance to create a more conducive environment for economic growth.
Long-Term Vision for Investment and Infrastructure
Dhakal proposed declaring the next decade as the “Investment Decade,” a move he believes could significantly enhance Nepal’s economic prospects. By introducing policies that ensure long-term stability and streamlined investment processes, FNCCI hopes to attract both local and foreign investment. He stressed that the government must address the existing barriers to business and infrastructure development, which have hindered economic progress for years.
Improving Capital Expenditure and Governance
A major concern raised by FNCCI was the inefficiency in capital expenditure. Dhakal pointed out that capital expenditures in Nepal have remained low, with underutilization of the allocated budget. He recommended that capital expenditure be prioritized to boost infrastructure development and market demand, thus stimulating economic activity.
To further promote economic growth, Dhakal emphasized the importance of good governance, calling for greater transparency and efficiency in public service delivery. He suggested that technological tools, like citizen apps for business registration, could streamline government processes and help reduce bureaucratic inefficiencies.
Diversification of the Economy
In addition to governance and capital expenditure reforms, FNCCI highlighted the need to diversify Nepal’s economy. Dhakal emphasized that the economy’s heavy reliance on remittances makes it vulnerable to future challenges, especially with demographic changes.
He suggested that the government focus on expanding sectors such as agriculture, tourism, energy, and information technology to reduce the country’s dependence on remittances and create new sources of income.
Support for Private Sector Growth
FNCCI also called for a business-friendly environment that encourages entrepreneurship and supports the private sector, which accounts for a large portion of Nepal’s economy. Dhakal stressed that the private sector must be empowered to lead economic development, creating jobs and boosting GDP growth.
Strengthening Cross-Border Trade and Security
Another recommendation from FNCCI was the need for improved cross-border cooperation to curb smuggling and unauthorized trade. Dhakal suggested that better coordination with neighboring countries would enhance border security and prevent economic losses.
Conclusion: FNCCI’s Roadmap for Economic Growth
In conclusion, FNCCI’s recommendations underscore the importance of policy stability, infrastructure development, and sectoral diversification to boost Nepal’s economic growth.
By prioritizing these areas in the upcoming budget, the government can create a more robust and sustainable economy. FNCCI remains optimistic that these proposals will be seriously considered by policymakers to ensure a more prosperous future for Nepal’s business community.
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