Kathmandu. Anjan Shrestha has been elected as the president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Shrestha took charge of the FNCCI office on Thursday. 

President Shrestha and other office-bearers of the Federation have also taken charge of the Federation. Assuming the office, Chairman Shrestha said that he would work to boost the morale of the private sectorduring his tenure. 

He also said that various policy reforms would be made in coordination with the government to boost the morale of the private sector.According to him, the government should be serious to provide incentives to the private sector and guarantee of investmentsecurity. 

Referring to the private sector } and the proposal related to security which has already been passed by the Council of Ministers, he stressed the need for its full implementation. Shrestha said that the demand in the market is very weak, people’s purchasing power has decreased and capital mobilization in the economy has slowed down. He stressed that the government should take necessary steps from the upcoming budget to increase capital mobilization.

Shrestha also said that small and medium enterprises (SMEs) are the most vulnerable at present.Although there is a lot of investment in the banking system, small industries are not able to get the necessary loans and investment. According to him, the cooperative sector used to mobilize capital of around Rs 600 billion in the past but after the crisis, there was a lack of investment in small industries.

Shrestha has pointed out the need for banks to formulate a clear strategy on how to expand investment in small and medium enterprises (SMEs).