FNCCI President Dhakal Stresses The Need For Legal Framework To Recover Credit In Nepal

6th August 2025, Kathmandu

In a powerful address at the 8th anniversary of the Jeetpur Simara Chamber of Commerce and Industry, Chandra Prasad Dhakal, the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has put a spotlight on a critical issue hindering Nepal’s economic progress: the absence of a robust legal framework for credit recovery.

Need For Legal Framework

His remarks underscore a growing consensus that for Nepal’s financial sector to thrive, and for businesses to operate sustainably, there must be a clear and enforceable mechanism to handle outstanding credit and delayed payments.

Dhakal emphasized that this is more than just a business concern; it’s a fundamental requirement for building a financially disciplined and stable economy. His message to the business community and the government is clear: without a proper legal system to enforce debt recovery, businesses will continue to face undue risks, which in turn stifles investment, growth, and overall economic health.

FNCCI: The Engine of Economic Reform

President Dhakal’s speech highlighted the crucial role FNCCI plays as a bridge between the private sector and the government. He proudly shared that through its persistent efforts and strategic advocacy, the organization has successfully lobbied for the amendment of over 30 business-related laws. These reforms have been instrumental in making Nepal a more attractive destination for investment by:

• Improving the business environment and reducing bureaucratic hurdles.
• Building investor confidence, which is essential for attracting both domestic and foreign capital.
• Strengthening the rule of law, making business transactions more predictable and secure.

Dhakal’s assertion is that these structural changes are not a one-time effort but an ongoing process vital for empowering the private sector, which he believes is the true engine of Nepal’s inclusive and sustainable economic growth. The FNCCI’s role as a proactive advocate for these changes showcases its commitment to transforming challenges into opportunities for a better economic future.

The Importance of Labor Relations and Local Chambers

Beyond advocating for national-level policy reforms, Dhakal also spoke on issues critical to the grassroots economy. He stressed the importance of harmonious relationships between employers and employees, noting that FNCCI is committed to fostering a collaborative environment. The organization has taken a proactive stance in setting minimum wage standards and promoting fair labor practices, which are key to both productivity and social justice in the workplace.

Dhakal also turned his attention to the vital role of local chambers of commerce, like the one in Jeetpur Simara. He urged them to continue their work as catalysts for grassroots economic transformation. By providing policy suggestions, resolving local business issues, and promoting entrepreneurship, these local bodies can have a profound impact on the ground. .

Jeetpur Simara: Nepal’s Emerging Industrial Powerhouse

Dhakal’s choice of venue for his speech was no accident. He lauded Jeetpur Simara as a strategic industrial hub and the “industrial capital of the Terai region.” This area’s growth potential is immense due to several key factors:

• Strategic Geographic Location: Its position makes it a natural hub for trade and commerce.
• Proximity to Key Infrastructure: The presence of Simara Airport and major highways like the Mahendra Highway and Tribhuvan Highway provides essential connectivity for businesses.
• Untapped Potential for Industrial Expansion: The region is ripe for further industrial and commercial development, which can create thousands of jobs and contribute significantly to Nepal’s GDP.

By highlighting the importance of such local hubs, Dhakal reinforces the idea that national economic prosperity is built on the strength and dynamism of regional economies.

The Path Forward: Partnerships and SME Support

Dhakal’s vision for Nepal’s economic future is not just about legal reforms but also about fostering a culture of collaboration and support. He highlighted FNCCI’s consistent efforts in:

• Promoting Small and Medium-sized Enterprises (SMEs): These businesses are the backbone of the economy, and FNCCI’s advocacy aims to provide them with the support they need to thrive.
• Advocating for Administrative and Tax Reforms: Streamlining these processes reduces the burden on businesses and encourages compliance.
• Supporting Infrastructure Development: Better roads, airports, and other infrastructure are essential for economic activity.

He concluded his speech by emphasizing that public-private partnerships are not just a buzzword but the key to a sustainable economic recovery, especially in a world marked by uncertainty. By working together, the private sector and the government can enhance policy coordination, attract investments, and accelerate infrastructure projects, all of which are critical for future prosperity.

Final Thoughts: A Blueprint for a Resilient Economy

FNCCI President Chandra Prasad Dhakal’s call for a legal framework for credit recovery is a timely and critical message for Nepal’s financial ecosystem. His speech in Jeetpur Simara serves as a comprehensive blueprint for building a more resilient and inclusive economy. It’s a call to action for the government to implement essential reforms and for the private sector to continue its role as a partner in progress. As Nepal navigates its path toward economic modernization, the pillars of its success will be enforceable laws, a thriving private sector, and strategic partnerships. These elements, as highlighted by Dhakal, are not just desirable; they are a necessity for a future of sustainable growth and prosperity.

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