Demands of the private sector regarding the country's economy

Addressing the 58th Annual General Meeting of the Federation of Nepal Chamber of Commerce and Industry, Chandra Prasad Dhakal, President of the Federation of Nepal Chamber of Commerce and Industry, expressed his views on the economic problems. We have presented the editorial part of it here. 

Currently, foreign exchange reserves are at an all-time high. That is, it is enough to import goods and services for about 12 and a half months. Banks also have around 6 trillion rupees that can be given as immediate loans. The demand for credit is low because entrepreneurs cannot expand their business. A positive message is sent when the balance of payments and current account are also in the forecast. But during this period, 80 billion rupees were exported while students went abroad.

Since PAL became a member of the World Trade Organization, exports have tripled and imports have increased tenfold. Foreign investment is only around 0.2 percent of the gross domestic product. Foreign subsidies are constantly decreasing. Financial management expenditure is almost twice as much as capital expenditure. If the internal resources cannot be increased, there is a possibility that the burden of debt will increase as Nepal is being upgraded from a least developed country.

Remittances are the reason why the external sector is strong even though export investment and aid are all low. It is known to us that remittances alone have been the basis for supporting the country for decades. Remittances alone are unlikely to sustain the economy. In the past, increasing remittances increased the demand and the revenue of the government also increased. The revenue has not increased as expected. Even with low capital expenditure, it seems that the government will continue to incur losses in the coming days.

Nepal's economy is weak due to internal rather than external reasons. Because during this period the growth rate of countries including India and Bangladesh is high. The World Bank has released an estimate that Nepal's economic growth will be only 3.3 percent in the current year. While Bangladesh is projected to grow by 5.6 percent and India by 7.5 percent. Even last year, the growth of Nepal was less than 2 percent, while the economy of India and Bangladesh expanded by more than 6 percent.

I personally am a person who looks at every field and endeavor positively. As much as I can, I don't even use the words no, no and not. We are self-sufficient and capable. Since our economy is small, it is easy to recover. Therefore, I believe that our strategies should suit our soil and our situation rather than any external influence. So even today I say, the small but positive efforts we take will give us great rewards.

For this, everyone's positive thinking and hard work is necessary. Don't let the dreams of our youth go to waste. We gave an opportunity to make the seal of an entrepreneur into rupees. The soil of vacant hills and settlements can become green. For this too, Nepal's private sector should be given more encouragement. How did we wake up after the earthquake? And how are we tight after covid? We can also take inspiration from these sorrows.

The private sector of the country is ready to take the lead in development and prosperity, but the environment is in need. We have submitted a five-point pledge in this dignified meeting today so that we can build this environment together and make the economy strong from today. We are expecting your commitment in this.