Boost Private Sector Confidence

Entrepreneurs and experts have emphasized that policy clarity and political stability are essential for economic development. They stressed that the government must ensure investment security to boost the confidence of the private sector. Speaking at the Gorkhapatra Discourse held on Thursday, representatives of the private sector and experts urged the government to safeguard private investment.

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that good governance, zero tolerance for corruption, and security of investment are crucial to enhance private sector confidence. 

Addressing the discourse, President Dhakal said that the government must protect private property. “As we talk about employment, good governance, zero tolerance to corruption, security of private property, and justice, it is concerning that institutions such as the Commission for Investigation of Abuse of Authority (CIAA), the Supreme Court, and private properties were burned down during the Gen-Z movement,” said President Dhakal.

He also stressed that private investment must be protected, as the private sector provides more than 80 per cent of employment in the country. “As the private sector contributes over 80 per cent of total employment, how can development be possible without it?” Dhakal asked. He further said that several incidents of vandalism and arson during protests have left the private sector feeling insecure.

“When a political leader becomes frustrated, they can leave politics overnight. However, a businessman cannot do the same due to responsibilities such as investment security, bank loans, and employment. We bear significant risks and cannot simply walk away. This is why the government must assure us and build our confidence,” said President Dhakal. Similarly, Dilliram Shrestha, Director of Ncell, said that vandalism and arson during the Gen-Z movement had created insecurity in the private sector, especially as those involved in such incidents had yet to be arrested.

“The government must ensure the security of the private sector. It is not only a job provider but also a key pillar of the national economy. The current political environment remains uncertain,” said Shrestha. He added that until those responsible for vandalism and arson are arrested, private sector confidence will not be restored.

“Our vehicles and private properties belonging to investors were burned during the protests. However, those involved have not been arrested. As a result, private investors are discouraged from making further investments,” Shrestha said. The entrepreneurs urged all stakeholders to create political stability to enhance confidence in the private sector. They also called on government officials to promote a positive image of the private sector.

During the dialogue, entrepreneurs and other stakeholders expressed concerns about political instability and the lack of appropriate legal frameworks to attract foreign investment. Meanwhile, entrepreneur Nikita Acharya, who was listed in Forbes 30 Under 30, noted that legal complexities and policy obstacles continue to discourage new investments in the private sector. She emphasized that political stability is essential for boosting private sector confidence and urged authorities to closely monitor startups.

“As startup companies have grown rapidly in recent years, appropriate legal and policy-based regulations are required,” said Acharya. She also pointed out that human resource shortages have become a major challenge, as many youths are leaving the country for foreign employment. Meanwhile, Rajeshwor Gyawali, Director General of the Department of Industry, stated that there is no need to worry about the security of the private sector, citing various facts.

DG Gyawali assured that the government is committed to safeguarding private investment and added that the investment climate is improving. “When discussing the business environment, we often focus on negatives rather than positives, even though data indicate a favourable environment for private investment,” he said.

Addressing the issue of political instability, DG Gyawali emphasized that foreign investment is essential to strengthen private sector confidence.

“Data show that foreign investment remains low. To attract it, political stability and strong legal provisions are necessary,” he said. He also urged stakeholders to adopt a positive approach to foster a supportive economic environment. Presenting data showing positive economic growth trends, Gyawali encouraged the private sector to collaborate with the government in economic development. “I see positive signs in the economy, so the private sector should not worry about the security of its investments,” he said.

During the dialogue, speakers expressed concern over the recent protests that targeted private properties and stressed the need for a safer environment for the private sector. The entrepreneurs called on the government to ensure security and promote positive messaging about the private sector. They also noted that negative content on social media has discouraged investors and urged the government and media to encourage.

Minister for Industry, Commerce and Supplies Anil Kumar Sinha has said that the government is committed to boosting the morale of the private sector.

Speaking at a programme organised by Gorkhapatra Sansthan under the national-level Gorkhapatra Discourse on Thursday, Minister Sinha said the government is making efforts to encourage the private sector and create a positive environment for investment.

Delivering the keynote address at the thematic session on Private Sector Confidence, he also expressed the government’s firm stance that organised crimes committed during the Gen-Z movement would not be tolerated. 

The minister urged all stakeholders to work together and assured that the government will ensure the security of the private sector. He clarified that there is no provision in the agreement with the Gen-Z groups that allows such crimes to be tolerated. 

Minister Sinha, who also holds the portfolios of the Ministry of Law, Justice and Parliamentary Affairs, said that although the primary responsibility of the current government is to hold elections, its fundamental duties include ensuring good governance and improving service delivery. He added that maintaining peace and security, enforcing zero tolerance against corruption, creating a conducive industrial environment, and ensuring the independence of government institutions are also key responsibilities of the government.

The minister further stated that the government is seriously considering the demands raised by the Gen-Z youth. “We have taken the issues raised by the Gen-Zs very seriously. Their main demands include transparency, good governance, control of corruption, and accessible public services that can be delivered within the country. “This movement has put pressure on us to move away from traditional processes and provide faster and easier services through the use of technology,” he said.

(Paudel is a reporter at this daily.)