Confederation of Nepalese Industries Chairman Emphasizes Transparent Auditing for Economic Growth

Kathmandu. Chairman of the Confederation of Nepalese Industries, Birendra Raj Pandey, has stated that a transparent auditing system is a fundamental pillar for the country's economic governance, a strong economy, and the development process. Addressing the annual general meeting of the Nepal Auditors' Association (Adan), Chairman Pandey urged that auditing should not be taken merely as a formal process. He argued that financial transparency strengthens good governance, which in turn improves the investment climate and contributes to sustainable development. Chairman Pandey informed that the Confederation of Nepalese Industries, representing the private sector, is advocating for policies to promote industry, protect domestic production, and develop the digital economy. He mentioned that the Confederation has conducted a special study with the objective of expanding Nepal's economy to a size of 100 billion dollars, and this study report will be made public soon. Discussing the country's current economic situation, Pandey noted that the effective expansion of capital expenditure is essential to achieve the target of 7 percent economic growth set by the budget for the current fiscal year. Chairman Pandey said, 'Auditing is the fundamental system for building trust.' He stated that a transparent financial system is necessary to build trust among investors, banks and financial institutions, the government, and the general public. He further said, 'In the past, the overall economic activity has been affected due to the inability to spend capital as expected. Although the government has adopted policies to encourage the private sector, the implementation aspect has always been challenging.' Pandey pointed out the positive situation where there is sufficient investable funds (liquidity) in banks and financial institutions and interest rates have also come down to single digits. However, he stated that the inability of demand for goods and services to increase in the market remains a major challenge. He emphasized the need for special initiatives to expand overall demand. Stating that policy stability and legal reform are primary conditions for building a prosperous Nepal, he expressed the view that economic prosperity is possible only through the joint efforts of the government, private sector, financial institutions, and regulatory bodies. He also clarified that the Confederation is continuously providing suggestions to the government for legal reform.