NPC to promote direct domestic investment

Kathmandu, May 25

Vice-Chairperson of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari, said that the NPC aims to promote direct domestic investment.

Speaking at a stakeholder discussion workshop on the promotion of internal employment and reintegration of returnees from foreign employment, organised by the Ministry of Labour, Employment and Social Security in Lalitpur on Sunday, he said that although institutions are willing to invest, obstacles such as lack of encouragement and the creation of hurdles have emerged.

He also added that the planning body is working closely on these matters.

Prof. Adhikari mentioned that the NPC is identifying the operational obstructions, overlaps, and issues of synergy and trade-offs in running organisations in an orderly manner. According to him, it is preparing operational procedures to remove such obstacles and has already initiated coordination and relevant work in this regard.

He also remarked that any institution that does not create employment for even two individuals should not be granted tax exemptions. He said that tax concessions should only be granted to those making large investments and creating employment.

He noted that the Commission would also provide strategic guidance on where and in what sectors investment should be made in the future. Although the unemployment rate has recently decreased, he stressed the importance of taking measures to avoid an increase in the unemployment rate in the future. According to Prof. Adhikari, the 16^th plan has set a target to bring the unemployment rate down to five percent.

He stated that at one time, the unemployment rate in neighbouring India was higher than that of Nepal, but recently, Nepal’s unemployment rate has surpassed India's. Stressing the potential for job creation in the mining, hotel and restaurant, real estate, construction, and hydropower sectors, he urged that these areas should be prioritised for investment in the coming days.

The Vice-Chair further said that by increasing investment in sectors such as agriculture, construction and small and cottage industries, individuals can be made labour-oriented, thereby accelerating the rate of employment generation. For this, the private and cooperative sectors should be encouraged, he said.

Published in The Rising Nepal daily on 26 May 2025.