2nd May 2025, Kathmandu
Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and chairman of Global IME Bank and IME Group, praised the upcoming fiscal year 2082/83 budget. He said the budget incorporates many suggestions from the private sector.
FNCCI Praises Nepal 2082 Budget
Speaking at the ‘Budget: A Holistic Discourse’ organized by the Economic Media Society Nepal (EMSN), Dhakal said the government recognizes the private sector as a key driver of the economy.
“This budget encourages private businesses. It promotes economic growth overall, not just private interests,” he said. “The government has included our suggestions through laws and budget provisions.”
Urgent Call For Proper Implementation
Dhakal stressed that the government must implement these suggestions well.
In the past, private sector demands appeared in budgets but did not get proper follow-up. This caused frustration among entrepreneurs and investors.
“This time, the government should ensure timely action. Otherwise, the private sector may lose faith again,” Dhakal warned.
Bold Step: Mineral Export Allowed
One of the most significant changes in the new budget is the permission to export mineral products.
“We have long requested the right to export Nepal’s mineral products. The budget now supports this,” Dhakal said.
He explained that industries have met all requirements to export mineral goods. He urged the government to avoid delays in putting this into practice.
Dhakal compared Nepal’s mineral policy to that of Middle Eastern countries. He noted that these countries advanced economically by exporting or processing their petroleum resources.
“Nepal must not hesitate. Mineral export can boost our economy,” he stressed.
Other Key Private Sector Requests Included
Besides minerals, the budget covers other private sector requests.
These include easing the lease process for Special Economic Zones (SEZs) and constructing an international convention hall.
Dhakal said these measures will improve the business environment and attract more investments.
Some Concerns Remain
Despite the positives, Dhakal pointed out some budget areas that might cause problems.
He criticized the provisions related to the Power Purchase Agreement (PPA) and the ‘Take and Pay’ policy in the hydropower sector.
“These policies could discourage foreign investors,” he said. “They may also create difficulties for banks financing hydropower projects.”
Dhakal warned these rules could slow the growth of the hydropower sector, which Nepal urgently needs.
Positive Move For Tourism
The budget also removed the foreign currency threshold for hotels near border areas.
Dhakal welcomed this change. He said it will ease operations for border hotels and boost the tourism industry.
“The tourism sector has struggled. These changes will encourage new investments and growth,” he said.
Past Failures Highlighted
Dhakal urged the government to learn from past mistakes.
He cited the Dhaubadi iron mine as an example.
“This project appears in every budget but fails to move forward. Lack of implementation frustrates investors and citizens,” he said.
He stressed the need for the government to ensure projects are completed, not just planned.
‘Take and Pay’ Policy Criticized
Dhakal warned that the ‘Take and Pay’ policy could harm the hydropower industry.
He explained that this policy limits electricity trade by requiring consumers to pay for power even if they do not use it.
“This discourages private companies and foreign investors,” Dhakal said.
He urged the government to reconsider this policy to promote investment and growth.
Importance Of Governance For Growth
Dhakal emphasized that good governance is key to the budget’s success.
“If the government implements this budget transparently and effectively, we can reach the target of 6 percent economic growth,” he said.
He called on all stakeholders to cooperate and turn budget plans into real economic progress.
Conclusion
The upcoming fiscal year 2082/83 budget shows promise by incorporating many private sector demands. It signals a positive shift toward recognizing the private sector as an engine of growth.
However, successful implementation remains the biggest challenge. Private sector leaders like Chandraprasad Dhakal urge the government to act decisively.
With proper follow-through, Nepal can unlock new economic opportunities, from mineral exports to improved tourism and hydropower development.
The future depends on partnership and commitment between the government and private players. The budget provides a solid foundation. Now, it is time to build upon it.
For more: FNCCI Praises Nepal 2082 Budget