Finance Minister Khanal Holds Talks with Private Sector on Economic Reforms

Finance Minister Rameshwar Prasad Khanal has held discussions with representatives of major private sector organizations on current economic issues. The meeting, held on Thursday, was attended by Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Kamlesh Kumar Agrawal, President of the Nepal Chamber of Commerce, Birendra Raj Pandey, President of the Confederation of Nepalese Industries, and Khemraj Bhandari, President of the Nepal Industry and Commerce Federation.During the discussion, the private sector raised concerns about the lack of implementation of the High-Level Economic Reform Commission’s recommendations, as well as the need for policy revisions to increase government revenue. Issues related to good governance and corruption control were also discussed. Business leaders emphasized the need to end the practice of keeping private sector-related files pending for long periods at different levels of government.The private sector also proposed several policy measures, including introducing a multi-rate VAT system, maintaining at least two tiers of tariff differences between raw materials and finished goods, promoting domestic production and exports, reviewing the effectiveness of regulatory bodies, and reducing high excise tax rates.Participants also stressed that expanding economic activities is essential to achieve the government’s long-term goals of around 7 percent economic growth, raising per capita income to about $3,000, and expanding the economy from around NPR 6 trillion to NPR 10 trillion. For this, they emphasized the importance of boosting the confidence of the private sector and addressing its concerns.Finance Minister Khanal stated that steps have already been taken to create an investment-friendly environment and strengthen economic governance, and he pledged to convey the remaining suggestions to the incoming government. Representatives of the private sector also expressed confidence that the recent election results could help form a stable government, which would contribute to improving the country’s business environment.