At a recent Federation of Nepal Industry and Businessmen event, leaders expressed concern that proposed regulations could significantly discourage investment and hinder economic development.

Kamlesh Kumar Agarwal, President of the Nepal Chamber of Commerce, criticized the government’s move to place the private sector under stricter regulatory oversight. He argued that proposals, such as restricting loans for individuals holding more than one percent of shares in banks and financial institutions, would deter investment and harm economic progress. Agarwal emphasized that such regulations are causing unnecessary strain and could undermine investor confidence.

Rajesh Kumar Agarwal, President of the Confederation of Nepal Industry (CNI), echoed these sentiments, calling for policy stability to support the struggling economy. He pointed out that numerous regulatory bodies already oversee the private sector, and adding more restrictions could further weaken it. He stressed the importance of facilitating rather than controlling the private sector to encourage both domestic and foreign investment.

Chandra Dhakal, President of the Federation of Nepalese Industries and Commerce, also voiced concerns about the potential negative impacts of the proposed bill related to banks and financial institutions. He questioned the rationale behind prohibiting loans from institutions with significant shareholder ownership, arguing that such measures could stifle job creation and economic growth.

The bill, which was registered on March 18th, is currently under discussion in the Finance Committee of the House of Representatives. Dhakal urged the National Bank to avoid enacting restrictive laws and instead focus on increasing regulation where necessary to prevent misuse of loans.

Industrialists are calling for a stable policy environment, emphasizing that a consistent and supportive regulatory framework is crucial for fostering economic growth and attracting investment.