Kathmandu, July 9
Prime Minister Balendra Shah on Thursday
held a discussion with representatives of the construction industry on the
prevailing challenges facing the sector, the promotion of the construction
business, and the development of physical infrastructure.
During a meeting with office-bearers of the
Federation of Contractors' Associations of Nepal (FCAN) at the Office of the
Prime Minister and Council of Ministers, Prime Minister Shah stated that the
construction sector is a vital pillar of the country's economic development,
employment generation and infrastructure development.
He said the Government remains committed to
addressing the practical challenges confronting the sector.
The Prime Minister emphasised that active and
effective collaboration among all stakeholders is essential to ensure the
construction industry remains dignified, transparent, accountable and
results-oriented, while enabling development projects to be completed on
schedule.
The meeting was attended by the Federation's
president Nicholash Pandey, senior vice-president Mukesh Panta, general
secretary Shivahari Ghimire, Bagmati Province vice-president Bal Krishna Thapa,
and the Federation's former president and adviser Jayaram Lamichhane.
During the discussion, the representatives
briefed Prime Minister Shah on the key challenges facing the construction
sector, including delayed payments, contract extension issues, contract
management, timely project implementation, price adjustment, banking
constraints and investment-related concerns.
They also stressed the need to strengthen
cooperation between the government and the private sector to revitalise the
construction industry.
PM expressed concerns that engineers are not
seen at the construction site and urged the FCAN representatives to have
engineers even in the small projects, he said.
In a memorandum submitted to PM Shah, the FCAN
said that Nepal’s construction industry, which directly and indirectly provides
employment to more than 2 million people and accounts for nearly 80 per cent of
government capital expenditure, is facing a severe crisis due to unprecedented
increases in the prices of fuel, bitumen and construction materials.
It warned that supply chains have been
disrupted, projects have stalled, and the broader economy has been negatively
affected.
The contractors have urged the government to
immediately address key issues, including price adjustment for construction
contracts as guaranteed by the Public Procurement Act, extension of project
deadlines affected by price hikes, shortages, natural disasters, political
unrest and elections, and settlement of sick and delayed projects.
They also demanded that contractors not be
blacklisted for delays caused by external factors such as global conflicts,
pandemics and economic disruptions.
Likewise, the contractors also called for
timely payment of outstanding bills, a transparent monthly payment system,
easier access to construction materials, removal of double taxation, regulation
of crusher industries, and scientific design and specifications for projects.
They argue that immediate government
intervention is essential to revive construction activities, maintain
employment and stimulate economic growth.
General Secretary of the FCAN, Shivahari
Ghimire, said to The Rising Nepal that PM said that the government has accorded
high priority and importance to infrastructure development and assured the
construction entrepreneurs that problems and issues in the sector would be
addressed at the earliest.
“Contractors are immensely impacted by the
price rise in petroleum products due to the crisis in West Asia. We updated the
PM about the challenges, such as price and time overrun, caused by the crisis
and sought timely solutions from the government,” he said.
According to Ghimire, the PM directed the
concerned agencies to solve the crisis to make the construction sector vibrant.
Published in The Rising Nepal daily on 10 July 2026.
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