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Nepal business confidence hits 36-year low: FNCCI chief
🇳🇵 Nepal /Economy & Trade

Nepal business confidence hits 36-year low: FNCCI chief

From OnlineKhabar English · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Business confidence in Nepal has hit a 36-year low, according to the president of the Federation of Nepalese Chambers of Commerce and Industry.
  • The sluggish market and economic challenges are making it difficult for businesses to operate, with demand not increasing.
  • The FNCCI president urged the government to prioritize the automobile sector, which significantly contributes to state revenue, and support domestic industries.

Business confidence in Nepal has plunged to its lowest point in 36 years, according to Anjan Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

Overall demand has not increased, operating industries and businesses have become difficult, and businesspeople are facing difficult circumstances. Business confidence is at its weakest point in history.

— Anjan ShresthaDescribing the current state of the Nepalese economy and business sentiment.

Shrestha stated that the current economic climate is characterized by sluggish markets and declining demand, making it increasingly difficult for industries and businesses to operate. He expressed concern that businesspeople are facing "difficult circumstances" and that overall demand has not improved.

The government has pledged through the budget to make the economy dynamic, increase per capita income to $3,000 within five to seven years, build a $100 billion economy and create 1.2 million jobs. But the budget announcements have not moved forward.

— Anjan ShresthaCriticizing the government's failure to implement budget promises.

Speaking at the opening of the 18th NADA Auto Show, Shrestha criticized the new government for failing to implement its budget commitments. He noted that pledges to boost the economy, increase per capita income, and create jobs have not materialized due to a lack of concrete strategies.

The government should prioritise a sector that alone contributes Rs 81 billion out of total revenue of Rs 1.2 trillion.

— Anjan ShresthaAdvocating for prioritizing the automobile sector due to its revenue contribution.

He highlighted the substantial contribution of the automobile sector to government revenue, citing Rs 81 billion generated from Rs 106 billion in imports last fiscal year. Shrestha urged the government to prioritize this sector and provide greater clarity in its policies. He also called for the establishment and protection of domestic industries to reduce reliance on imports, cautioning against neglecting currently operating businesses while focusing on reviving closed ones.

While picking up what is on the ground, I want to caution the government that it should not end up dropping what it already has in its pocket.

— Anjan ShresthaWarning the government against neglecting existing industries while trying to revive others.
DistantNews Editorial

Originally published by OnlineKhabar English in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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