FNCCI President Calls for Foreign Investment to Realize Social Justice and Economic Growth
Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), emphasized the strong employer-employee relationship in Nepal and the absence of significant labor issues in recent years during his address at the 112th International Labour Conference in Geneva, Switzerland. He highlighted the private sector's adherence to International Labour Organization (ILO) regulations and conventions ratified by the Nepalese government, alongside independent initiatives to uphold employee dignity.
"Dignity, in our view, extends beyond proper conduct. It encompasses enhancing our employees’ capacities for personal and professional development, providing them with better opportunities," Dhakal stated.
Dhakal underscored the need for investments to advance the agenda of social justice by creating decent employment opportunities. He pointed out Nepal's immense potential in hydropower production, with significant markets in India and Bangladesh. Nepal has an agreement with India to purchase 10,000 Mega Watts of electricity and is in the process of finalizing a similar agreement with Bangladesh.
Tourism was identified as another critical sector, with Nepal's hill stations and the Himalayas attracting numerous visitors. The tourism sector’s multiplier effect is substantial, providing livelihood opportunities for the rural population.
Dhakal also highlighted the value of Nepal's youth population as an asset for investors, particularly in the booming Information and Communication Technology (ICT) sector, which offers large-scale employment opportunities.
"Nepal, situated between India and China, offers duty-free market access to India, a benefit that will continue even after our graduation from the Least Developed Country category," Dhakal noted. "This facility will be available in the EU market until 2029, and we are negotiating similar access with China and other markets. This positioning allows for production in Nepal with export potential worldwide."
Dhakal mentioned that the Cabinet has approved the Bilateral Investment Agreement Framework, and Nepal is prepared to sign agreements with interested countries. The national budget also includes provisions for signing Double Taxation Avoidance Agreements (DTAA) with potential countries.
The FNCCI, representing approximately 600,000 businesses, remains the largest private sector umbrella organization in Nepal.
