1st June 2025, Kathmandu
Chandraprasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stressed the urgent need for close coordination between the government’s budget and monetary policy.
Nepal Budget 2025 Policy Coordination
He said this coordination is essential to achieve meaningful economic results in the new fiscal year. Dhakal shared his views during a post-budget discussion organized by the Nepal Association of Financial Journalists (NAFIJ) held in Kathmandu on Saturday.
Positive Steps In The Budget, But Some Areas Missed
Dhakal started by appreciating the government’s efforts. He said the budget is comparatively better this year. The government listened to many suggestions from the private sector. It recognizes the private sector as a key driver of Nepal’s economy. “The budget shows a positive approach,” he said.
However, Dhakal also pointed out some gaps. Certain important issues raised by the private sector remain unaddressed. He urged the Finance Minister to review these gaps carefully. “We hope the government will reconsider the points that were left out,” Dhakal added. He believes revisiting these issues can make the budget more inclusive and effective.
Importance Of Effective Budget Implementation
Next, Dhakal emphasized the need for proper execution of the budget. He said that simply making a good budget is not enough. The government must focus on delivering the promises in the budget on time. “The private sector supports the government when it takes sound decisions. But those decisions must be implemented properly,” he remarked.
Dhakal urged the authorities to strengthen monitoring and accountability mechanisms. This will help ensure that the allocated resources reach the intended sectors and produce the desired impact.
Focus On Key Sectors With Some Challenges
Dhakal welcomed the government’s focus on key sectors such as mineral and non-mineral resource extraction and tourism. He called these areas crucial for economic growth. Yet, he raised concerns about rising tourist costs. The introduction of Tax Deducted at Source (TDS) and other taxes is making travel expensive for visitors. This could hurt Nepal’s tourism industry.
He suggested the government introduce facilitation measures to ease the tax burden on tourists. “Lowering these costs will help Nepal remain attractive to tourists and encourage more visits,” Dhakal said.
Incentives In Agriculture, Industry, And Technology
Dhakal highlighted the positive effects of government incentives in agriculture, tourism, industry, information technology, alternative energy, and special economic zones. He said these sectors are vital for Nepal’s overall development. The government’s decision to provide facilities for industries that export at least 30 percent of their products is a big plus.
“This step will encourage more production-oriented businesses to grow,” Dhakal noted. He believes such incentives will help boost Nepal’s industrial and technological progress.
Need For Streamlined Foreign Investment Facilitation
Regarding foreign investment, Dhakal praised the government’s move to empower the Investment Board. This will help attract and manage foreign direct investment (FDI) better. Still, he stressed that having an empowered board is not enough.
“There must be a unified legal framework and a one-door policy to ease foreign investment,” Dhakal explained. He also called for efficient coordination among all agencies involved in investment facilitation. “Only with these improvements can Nepal attract more foreign capital smoothly and quickly,” he added.
Optimism About Economic Growth Target
Dhakal expressed confidence in Nepal’s economic outlook. He said if the government executes its policies and programs well, achieving the six percent growth target in the coming fiscal year is possible. He described this growth rate as realistic and within reach.
However, he warned that without good governance, transparency, and strong institutional capacity, the goals might remain out of reach. “Governance must be the top priority in all efforts,” Dhakal emphasized.
He called on all stakeholders to work together for better accountability and proper use of public resources. This cooperation will help Nepal’s economy recover and thrive.
Conclusion: Collaboration And Good Governance Key To Success
In summary, FNCCI President Chandraprasad Dhakal highlighted the strengths and weaknesses of the new budget. He praised the government’s acknowledgment of the private sector’s role. Still, he pointed out the need to address certain missing priorities.
Dhakal’s message was clear. Good coordination between budget and monetary policy is vital. Equally important is the proper implementation of policies and programs. He also urged the government to simplify foreign investment rules and reduce costs for tourists.
Above all, Dhakal insisted that good governance must guide Nepal’s economic journey. With sound policies, transparency, and strong cooperation, Nepal can achieve steady growth and prosperity shortly.
The post-budget discussion hosted by NAFIJ provided a crucial platform for dialogue. Stakeholders shared their views on how to overcome challenges and seize opportunities in Nepal’s economy. Dhakal’s remarks reflect the private sector’s hopes and concerns as the country embarks on a new fiscal cycle.
For more: Nepal Budget 2025 Policy Coordination