‘Private sector assets contribute to national economy despite ownership’

KATHMANDU: Finance Minister Rameshwar Khanal has said that although industries and business enterprises are privately owned, their overall asset contribution should be understood as part of the nation’s economic strength. Speaking at a program in Kathmandu on Friday, he emphasized that the role of the private sector in job creation, tax contribution, and economic growth is vital to Nepal’s national development.

Minister Khanal highlighted that private enterprises pay taxes to the state, generate employment opportunities, and contribute to trade, production, services, and national value creation. “There may be private ownership in any industry or business. But that business contributes to the state by paying taxes and creating employment. It strengthens the overall national economy. Therefore, the private sector must be understood as a shared asset of the nation,” Khanal said.

He said misinformation had played a damaging role during recent protests in Bhadra, targeting several business institutions without understanding their contribution to the economy. “From Hilton to Bhatbhateni and several automobile showrooms, properties were damaged. Wrong communication and misinformation fueled the anger. We must now be more aware,” he said, stressing the importance of responsible information dissemination to protect the investment environment.

Minister Khanal also pointed out that Nepal’s public perception toward foreign direct investment (FDI) is often shaped by suspicion rather than economic logic. He said Nepal needs to shift from a culture of distrust to one that welcomes international investors and global capital into domestic industries.

“In Nepal, the moment large foreign investment enters, baseless fears are spread such as ‘the country will be looted.’ Instead of discouraging investors with such negative perception, we should be inviting capital, technology, and global partnership with a clear and confident outlook,” he said.

Citing the case of telecommunications company Ncell, the Finance Minister clarified that foreign investors have the right to repatriate profits but the infrastructure, business operations, employees, taxes, and long-term economic value remain within Nepal. “When Ncell’s ownership changed, the investor took their profit. But the company remains in Nepal, the infrastructure remains, and thousands continue to benefit. The economy continues to function. The narrative that foreign investors take everything away is misleading,” Khanal stated.

He noted that despite the business disruptions and commercial property damage during the protests, government revenue collection has not weakened. According to him, customs revenue increased by 9% and internal revenue by 4% during the review period. Apart from reductions in interest tax and capital gains tax collections, all major tax categories recorded growth.

“This shows the confidence, strength, and resilience of Nepal’s private sector. Even in the face of disruption, businesses continued operating and contributing to revenue and employment. The morale of business and economic institutions remains strong,” he said.

Economists and private sector leaders present at the event echoed the need for a stable investment climate, reduction of misinformation in public discourse, and a clear policy stance that recognizes the private sector as a long-term economic partner. The discussion also underscored Nepal’s need to improve its investment climate, regulatory predictability, economic security, business governance, and international investor confidence to attract and retain global business interest.