Supporting Private Sector

During the recent Gen Z movement, the private sector suffered severe attacks, causing massive destruction to its properties and businesses. Several business centres and a few hotels across the country were turned into ashes, which came as a big blow to the economy, which has been gradually recovering from the impacts of the COVID-19 pandemic and the Russian-Ukraine war. Worried by the latest destruction, the private sector has been demanding security for its businesses and the creation of an investment climate in the country.    

No doubt, protecting private sector investment is necessary to create a conducive environment so that the entrepreneurs and investors feel secure to invest. This aspiration of the private sector was rightly addressed by the government, assuring them that the government is committed to protecting investors and investment of the private sector. This assurance came from Prime Minister Sushila Karki herself the other day.  

Speaking at the National Economic Dialogue 2.0, Prime Minister Karki said that the government and the private sector are the engine and fuel in a vehicle; one complements the other, and without one, the other cannot move ahead. The government’s affirmation to protect the sector has not only boosted the morale of the business communities but has also demonstrated that it values steady economic growth. In the present-day world, the private sector is the major contributor to economic growth and employment. 

The assurance, which comes at a time when the morale of the private sector has faltered, is a significant step towards restoring investors' confidence. Not only that, the government has also shown commitment to covering the cost of damage not covered by the insurance companies. Likewise, it has rescheduled the tax submission date for private companies by adding one month, which could be an immediate relief to the affected businesses. Offering tax subsidies, loan restructuring and rescheduling facilities to the affected businesses are some measures that could come as a big relief to the sector and help attract investment during the time of crisis. 

Failing to protect the private sector will result in the loss of investors' confidence, which will result in a shortage of capital required to boost businesses and development activities. It will also lead to the loss of jobs and weaken the labour market. 

Besides, maintaining good governance and political stability is equally important for sound economic development. Rampant corruption has been a headache for the private sector over the years. Prime Minister Karki, in her address, also said that the youth who waged the Gen-Z movement will not tolerate corruption, bad governance and looting in the name of democracy, and the government would book all the culprits involved in the vandalisation of the private properties and businesses. 

Rebuilding the businesses that were destroyed during the Gen Z movement is a must so that the livelihood of people tied to those businesses is not affected. But the encouraging thing is that the business entrepreneurs who have suffered arson and vandalism to their businesses have said they are not discouraged and are committed to rising again. A constant collaboration and dialogue between the government and the private sector through the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) can help address the grievances of the private sector and revive the economy. It is the duty and responsibility of this interim government to provide an environment for the businesses to revive through both immediate relief and long-term policies and programmes.