Kathmandu, Oct. 15
The Federation
of Nepalese Chambers of Commerce and Industry (FNCCI) and the International
Finance Corporation (IFC) – a member of the World Band Group - have agreed to
collaborate on examining the state of the private sector in Nepal to showcase
the latter’s contribution to the economy.
The study is
expected to help inform policymaking for private sector development, the two
organisations said in a joint statement on Saturday.
“The
collaboration will notably take the form of a joint report, which will generate
data, insights, analysis, and policy recommendations on the development impact
of private investments in the country,” read the statement.
In doing so,
it aims to inform policy dialogues on private sector development issues among
government, private sector, development partners and other stakeholders.
Nepal’s
private sector has grown exponentially since the 1990s. Over 99 per cent of
formal firms are privately-owned, with private ownership significantly present
even in social sectors such as education and health. Accordingly, the private
sector has an increasingly large share of capital formation and job creation.
However, Nepal still has one of the lowest aggregate labour productivities in
manufacturing in South Asia, said the FNCCI.
“For Nepal to
achieve its development objectives, the private sector will need to be further
developed and strengthened,” said Shekhar Golchha, President of FNCCI. “This is
possible only through greater and well-informed policy reforms and dialogue
between the public and private sectors. Therefore, this report will have a big
role in help in this regard, particularly given that it will also be using
government data.”
As the largest
global development institution focused on the private sector in emerging markets,
IFC is committed to help develop markets and opportunities in Nepal, which will
require further improvement to the investment climate for both entrepreneurs,
and domestic and foreign investors, it said.
“A periodic well-researched analytical report on the state of private sector will be critical in further informing the public-private policy dialogue, and help the private sector maximize its development impact for the benefit of the people of Nepal,” said Babacar S. Faye, IFC's Resident Representative in Nepal.
Published in The Rising Nepal daily on 16 October 2022.
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