Economy to only improve with a policy that promotes the private sector: FNCCI President Dhakal

KATHMANDU:Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has stated that policy stability is required for the private sector to function effectively. During a discussion with the International Monetary Fund (IMF) mission, President Dhakal requested that the IMF provide policy recommendations and prepare policies based on a knowledge of the Nepalese economy and social structure.

"The structure and character of the Nepali economy are somewhat different" , he commented, and "if policies cannot be made accordingly, reforms will be delayed" .

He stated that the FNCCI urged banks to be flexible in making loans on their conditions and warned that excessive regulation might erode the confidence of both the banking sector and private enterprises.

Dhakal expressed a belief that the government's new generation reforms, which are based on private sector proposals, will provide solutions.

He stated that during the previous investment conference, eight laws were revised to boost investment, and a draft bilateral investment agreement was also prepared.

President Dhakal urged the fund to help Nepal's promotion, even though the country has significant foreign exchange reserves and a good balance of payments, making it difficult to attract foreign investment.

During the meeting, Mission Chief Sarawat Jahan stated that the fund had come to assist Nepal. He also stated that the fund is always favorable about prioritizing the private sector.