Govt, private sector partners in development endeavours: PM Oli

Kathmandu, Apr. 10

Prime Minister KP Sharma Oli has said that the government and private sector are the partners in national development and prosperity.

"We have a very good model of public-private cooperation in Nepal. The government is implementing reforms as per the suggestions by the private sector. There is a significant cooperation and support from the private sector in policy reforms, introducing new laws even through the ordinances," he said while addressing the inaugural programme of the 59^th Annual General Assembly of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Industry and Commerce Day 2081 in Kathmandu on Thursday.

PM Oli said that job created, products manufactured and gain made by the private sector are calculated as the national level achievements, which are the parameters of prosperity.

"The private sector is discussing the overall national development, economic growth and job creation, and wants the government support its initiative. As the private sector has committed itself with determination and confidence towards development, the government is ready to support it," he said.

Prime Minister Oli said that Nepal needed a dynamic political stability to assure the business community that there wouldn't be any unpredicted policy changes but stability in policy.

Likewise, he stated that the country must transit from the subsistence agriculture while industrialisation and automation should be promoted in every sector of business and society.

PM Oli praised the efforts of the FNCCI to establish Rs. 10 billion Nepal Development Company that aims at financing large infrastructure and other projects.

According to him, current need is to usher the economy to self-reliance, import substitution and export enhancement.

"However, we have long been indifferent to the creation, development, adoption and transfer of technology. We must prioritise the transfer of latest technology to increase productivity, boost production and reduce the cost of production," he said.

 

Priority to industrial infrastructure

Minister for Industry, Commerce and Supplies, Damodar Bhandari, said that the government has given priority to infrastructure development including the base for industries. This will help in reducing the cost of doing business and promoting export of made in Nepal goods.

"Increasing production, reducing and substituting imports, and creating employments are the focus of the government. To achieve these goals, we will collaborate with the private sector. Policy reforms will be continued in consultation with the private sector," he said.

Minister Bhandari also expressed his commitment to further reform business environment through the policy and programmes as well as budget of the upcoming Fiscal Year 2024/25.

According to him, the government's commitment to improving business environment is also exhibited in the recent efforts to amend various laws and facilitating the business process and activities.

He also said that smooth and sustainable upgrading of Nepal to the 'developing country' from the current 'Least Developed Country' and proper facilitation to the private sector to support them in coping with the situation that would arise after the graduation are also the priorities of the government.

Similarly, Minister for Foreign Affairs Dr. Arzu Rana Deuba, said that national prosperity could be achieved only through a strong partnership between the government and private sector.

"Political instability has long been an impediment to business and economy. Current ruling coalition is formed to bring the much needed political and policy stability in the country. We are hopeful that it would contribute to better environment for business," she said.

FM Dr. Rana said that the country needs to put additional efforts to attract the Foreign Direct Investment as she has found significant interest about making investment in Nepal during her foreign trips including the recent one to the BIMSTEC summit.

 

Reforms should reach ward level

President of the FNCCI, Chandra Prasad Dhakal, said that the country has entered into the second phase of business and economic reforms. "The recently initiated business-targeted reforms should be expanded to the provincial and local levels down to the wards," he said while maintaining that the reforms encompass policy and rules, processes, behaviour and conduct, health and education.

Stating that it is a matter of happiness that the growth in the Gross Domestic Product has reached 5 per cent in the third quarter of this year, Dhakal said that confidence of entrepreneurs is yet to be restored.

"I would like to propagate hopes. The economy is on the path of recovery. However, current reform efforts are not sufficient to address the growing need of the youth. Until we create decent employment opportunities with high wages, we can't change the despair into hope," he said.

Presenting the analogies from Korea to Rwanda, Dhakal said that while South Korea's per capita income has gone up by 400 times in the last 65 years, Nepal could achieve only 28 times during the same period. Likewise, Bangladesh which is also graduating to 'developing country' with Nepal next year is exporting goods worth more than US$ 40 billion. This is almost the size of Nepal's annual GDP.

He also said that the private sector has the capacity to create a capital of Rs. 1600 billion in a year with just Rs. 400 billion investment from the government.

Published in The Rising Nepal daily on 11 April 2025.