President Dhakal urges government and central bank to implement special measures for public morale boost

KATHMANDU: Nepal’s industrial sector is set to receive a boost as both the government and the Nepal Rastra Bank (NRB) plan special measures to uplift public morale and investor confidence, according to Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry.

Speaking at the conclusion of the National Tax Day 2080 week-long event, Dhakal addressed the positive external indicators in the economy. He emphasized that while external economic indicators are showing positivity, it is crucial to enhance the morale of the general public and investors to keep the economic momentum going.

“Recently, in a comprehensive meeting with representatives from all political parties, the Finance Minister and the Governor of the NRB revealed encouraging statistics.

Despite the ongoing economic challenges, the figures indicate progress in economic reforms. However, the issues faced by small and medium-sized enterprises (SMEs) have now become apparent in larger businesses as well. The Nepal Rastra Bank’s increased profits also signify a positive trend,” Dhakal stated.

Highlighting the need for swift policy changes, Dhakal suggested that to enhance investor confidence, the government should immediately release funds stuck in government expenditure, control the increase in general expenses, and release the money collected through value-added tax (VAT) within six months.

He also urged the government to expedite legal proceedings related to tax disputes, emphasizing that although laws exist, their implementation is lagging behind. Moreover, he praised the cooperation between the government and the private sector during the COVID-19 pandemic, emphasizing the need for continued collaboration.

Discussing the role of the NRB, Dhakal acknowledged the central bank’s efforts but suggested that the current system still poses challenges for small and medium enterprises (SMEs). He urged the NRB to bring in special tools to assist the SMEs, enabling a smoother flow of funds and making the process more accessible.

While the economy faces challenges, Dhakal’s positive remarks and the government’s commitment to implementing special measures signal a joint effort to navigate and overcome the economic hurdles.