Govt, private sector sign deal to build economy worth $100 bn by 2030

Mathmandu, Aug. 11

In a rare event in Nepal's private sector history, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has succeeded in getting endorsement of the government for its Nepal Economic Transformation (NET) 2030 – a vision of national development for this decade.

The business body and the Ministry of Industry, Commerce and Supplies signed a Memorandum of Understanding (MoU) on Thursday to implement the Vision 2030.

Hailed as the government-private sector partnership, this would bring together the two pillars of the economy together at a platform to achieve the target to build an economy worth US$100 billion by the end of 2030 and lead it to a middle-income country.

The year is also the deadline to achieve the Sustainable Development Goals (SDGs).

The document was created by the FNCCI and published last year. Apart from taking the national economy to $100 billion mark, it envisions creating employment for 2.2 million people in formal private sector enterprises, reducing trade deficit to the half of the economy as well as various policy reforms and startup development.

The partnership will also bring together the business community and MoICS in creating reforms in law, policy and process in order to enhance private sector investment, production, infrastructure development and employment generation.

Industry secretary of the MoICS and FNCCI President will jointly lead the steering committee to monitor the progress of the campaign while the implementation committee will be led by the joint secretary of the ministry.

Minister for Industry, Commerce and Supplies Dilendra Prasad Badu welcomed the move and said that the government and private sector have common objectives for national development. "With the MoU signed today, the two bodies have the same objectives to achieve," he said, "This cooperation will certainly lead us to a better development scenario so we need to create a monitoring mechanism to ensure its effective implementation and maintaining stronger ties between the two entities."

Realising the need of a campaign for national development, the government has launched a decade-long campaign for the same. The campaign needs a strong support and cooperation from the business community, said Minister Badu.

"I would like to express commitment that the government would sincerely maintain the partnership with the private sector and will always fulfil its role of guardian of the business community," he said.

To facilitate the private sector development, the land ownership limit is being reviewed, Foreign Direct Investment (FDI) threshold is reduced to Rs. 20 million in order to promote export-oriented industries in the country, one-door facilitation centre has been established to attract domestic and foreign investment.

Minister Badu announced that the government guarantees the protection of your investment, the ministers assured the businesspersons.

"We expect a sincere cooperation from the private sector to achieve the development growth target. There is also a need to forge collaboration among the government and private sector initiatives to support start-ups and incubation centres," said Minister Badu.

Secretary of Industry Dr. Toya Narayan Gyawali said that this vision paper is expected to support the government and MoICS in further strengthening the public private partnership and speed up in creating business and investment climate.

Business growth is pre-requisite to achieve the national economic growth target. About 55 per cent investment in development is expected to be mobilised by the private sector, he said.

President of the FNCCI, Shekhar Golchha, stated that it’s a special day for the business community.

"This is an initiative for the public private partnership for economic transformation. Now the government and the private sector are walking the same track that leads to the national development and prosperity," he said. 

A directive committee and implementation committee, including the members of government and private sector agencies, will be formed to monitor the progress in the implementation and achievement made.

The Memorandum of Understanding (MoU) was signed by FNCCI President Shekhar Golchha and joint secretaries duo of MoICS Gobinda Karki and Narayan Prasad Sharma Dawadi.

 Published in The Rising Nepal dain 12 August 2022.