Kathmandu. Chairman of Nepal Chamber of Commerce Kamlesh Kumar Agrawal has said that the private sector has not been able to experience the expected ‘economic freedom’. Speaking at the 28th annual general meeting of the Society of Economic Journalists of Nepal (SEJON), Chairman Agrawal said that although democracy is practiced in the political sector and social democracy in the social sector, the private sector has not been able to realize the expected ‘economic freedom’.

Agrawal said that the confidence of the private sector has weakened as the country’s economy has been sluggish for a long time. He stressed that economic policies should encourage private sector investment and business environment. Chairman Agrawal said that SEJON has been making Nepal’s economic discourse responsible and accountable through facts, information and analysis. He said that economic journalism has an important role to play in creating a public debate on the budget, monetary policy, economic policy and its impact on the lives of industrialists and businessmen and the general public.

He said that Nepal’s economy is going through a situation of serious challenges after the COVID-19 pandemic. He said that although there is a lot of potential in the areas of youth manpower, hydropower, tourism, information technology and minerals, economic slowdown, weak private investment, declining confidence in industry and trade, high liquidity in the banking system, weak demand for loans and limited employment opportunities are the main challenges.

He said that the fact that the economy remained stable for a long time has further discouraged the private sector. He said that policy stability, credible implementation, transparency and coordinated reforms were necessary to make Nepal’s economy sustainable and dynamic.

He said that the results of the elections held after the recent political change have given new hope for economic prosperity in the country. He said that although the policies and programs presented by the government, the 100-point action plan and the budget for the current fiscal year have encouraged the private sector, the economy has not taken the expected pace even after a long time of the formation of the government. He said that the industrialists and entrepreneurs are still in a wait-and-see situation.

Stressing the need for necessary adjustment between policies, procedures and procedures for sustainable economic recovery, Agrawal said that the laws related to investment and other policy provisions should be revised according to the time. He also said that the government’s decision to prioritize infrastructure projects is positive.

Agrawal said that the private sector has been supporting the state in times of disaster and the private sector is fulfilling its social responsibility even in difficult situations. He said that although the private sector has a high risk-bearing capacity, this capacity will gradually weaken due to the lack of a dignified business and industrial environment. He also urged the political leadership to use respectful language towards businessmen and the private sector.

Stating that the private sector has been facing problems due to some short-sighted and impractical policies adopted in the past in the insurance sector, he said that there is a need for practical improvement in the policy related to reinsurance. He said that such policies could create a situation where the liability for the loss caused by disasters could be increased in the country.

He said that the stock market investors have also suffered huge losses due to the short-sighted policies of the past. He said that the recent natural disasters and other incidents have caused damage to industries, businesses, hotels, warehouses, machinery and other business assets which have created additional pressure on the economy.

He said that to get Nepal out of the grey list, it is necessary to implement effective anti-money laundering and terrorist financing activities (AML/CFT) provisions. However, he said that there is a need to strike a balance between regulation and facilitation, saying that the tendency to look at all investment activities with suspicion can weaken the morale of legitimate investors.

Stating that the state mechanism has not been able to record the legal property acquired from industry, trade, agriculture and generational property even before the law related to money laundering came into force, Agrawal said that a practical policy was needed for systematic documentation and legalization of such property.

Stating that there was no dearth of possibilities for economic prosperity in Nepal, he said that right policies, credible implementation and coordinated reforms should be given priority. “Stability, trust and transparency are the main foundations of sustainable economic prosperity,” he said.

Underlining the need for effective collaboration among the government, private sector, political parties and media, he stressed on the need for all sides to work together to build a productive, competitive and prosperous Nepal by transforming existing challenges into opportunities.