Federation of Commerce and Industry Chairman Calls for Government Support to Private Sector for Industrial Development

Kathmandu. Chairman of the Federation of Nepal Industries and Commerce, Anjan Shrestha, has stated that the government should provide concessions and incentives to the private sector for the industrial development of the country. Speaking at the inauguration ceremony of the 'Naima Nepal Mobility Expo' which began in Kathmandu, he demanded that the government create a suitable environment for investment in the current economic situation. Shrestha expressed concern over the increasing import of counterfeit parts and batteries in the automobile sector. He stated that government bodies such as the Customs Department and the Department of Transport Management should effectively monitor this. Highlighting the significant contribution of the private sector to employment, he informed that the private sector accounts for 86 percent of the country's total employment. He mentioned that although 5 to 6 lakh youth enter the labor market annually, the government can only provide employment to a limited number, with the remaining large portion being supported by the private sector. He stated that employment must be created within the country to address the issue of youth migration. Presenting the fact that Nepal currently depends on imports for 70 percent of its goods and only 30 percent is produced domestically, he suggested adopting new strategies for industrial expansion. Expressing disagreement with the government's involvement in operating industries, he clarified that the government's role is to facilitate, not to conduct business. While positively acknowledging the government's efforts to restart closed industries like the Hetauda Garment Industry, he also demanded attention to the revival of sick private sector industries. He clarified that a policy of only running government industries while ignoring problematic private sector industries is unacceptable to them. Speaking at the program, Shrestha said, 'In the current situation, even if businessmen want to invest, they have to invest by taking loans. Therefore, the government should provide concessions and incentives by creating an environment for the private sector to invest. The problem of counterfeit and substandard parts and batteries entering the market is serious. Customs, the Department of Transport Management, and related bodies must strictly monitor this.' Speaking on the issues of revenue and employment, he added, 'We should not make Nepal a dumping site for substandard goods in the name of revenue. The private sector is creating a large share of employment in Nepal. A large number of youth enter the market for employment every year, so to prevent foreign migration, private sector investment and job creation should be prioritized.' Regarding production and government policy, he said, 'To reduce import dependency, it is necessary to encourage assembling and contract manufacturing industries. Utilizing Nepal's geographical advantage between India and China, an environment should be created to produce not only automobiles but also other imported goods in Nepal. The government should provide a competitive environment to the private sector rather than operating industries.' He further added, 'There should not be a dual policy of subsidizing government industries and forcing private industries to compete. Government and private sectors should be given an equal playing field. The government should also facilitate the restart of closed and problematic private industries.' Regarding industry revival, he added, 'The effort to operate government industries is welcome, but along with that, policies to revive private sector industries that have been closed for years should also be advanced equally. This will greatly contribute to industrialization, employment, and building a self-reliant economy.'