The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the International Finance Corporation (IFC) to assist Nepal to find a way out to existing economic challenges and for enhancing its financial accessibility.
The FNCCI stated that the support and cooperation from the IFC was necessary to promote small and medium-scale industries in Nepal, to promote infrastructure development and to see the improved investment status. During a meeting with visiting Susan M. Lund, IFC Vice President for Economics and Private Sector Development, FNCCI President Chandra Prasad Dhakal insisted on the assistance from the IFC to promote economic atmosphere in the country.
“Nepal is currently grappling with economic issues primarily due to challenges in managing the post- COVID-19 situation. The government and the mass as well have been affected by the economic slowdown, particularly in the private sector,” he said. The government’s revenue decreased by around 13 percent and people’s purchasing power has declined due to increasing inflation, he added.
In response, the IFC Vice President said they were ready to cooperate with the FNCCI for the promotion of private sector. As the IFC, World Bank Group claims, it is the largest global development institution focused on the private sector in developing countries. The FNCCI with the collaboration of Corporation had organised a report on the contribution of private sector in economy and a conference of small and middle-scale entrepreneurs.
The IFC Vice-President said the development centre and skill development to be started for small-scale entrepreneurs by FNCCI are important. On the occasion, Senior Vice-President of FNCCI, Anjan Shrestha, pointed out the need of making the market dynamic as most of the industries are in operation at low capacity.
Similarly, Vice-Presidents-Hemraj Dhakal and Jyotsana Shrestha shared that improvement in tax system and promotion of goods comparative advantages for Nepal was necessary. President of Investment and International Affairs Forum of FNCCI, Manoj Poudel, stressed on policy-level reforms in investment expansion, according to FNCCI.