Nepal Chamber of Commerce Proposes 43 Recommendations to Newly Appointed Prime Minister KP Sharma Oli

Officials and members of the working committee of the Nepal Chamber of Commerce extended their congratulations to the newly appointed Prime Minister KP Sharma Oli and provided him with a comprehensive set of 43 recommendations aimed at enhancing political stability and economic viability in the country. The delegation, led by Chairman Kamlesh Kumar Agrawal, met Prime Minister Oli at his residence in Baluwatar.

The Chamber’s recommendations focus on improving the coordination between budgetary and monetary policies to stabilize the economy, which has been volatile for nearly four years due to factors such as the COVID-19 pandemic, the Russia-Ukraine conflict, and restrictive economic policies.

Key Recommendations:

1. Economic Stability: The Chamber urged the Prime Minister to ensure effective coordination between the fiscal year’s budget and monetary policy to make the economy viable.

2. Financial Facilitation: It called for easing financial facilitation for the private sector, which constitutes nearly 81% of the country’s economy. This includes simplifying the process for obtaining loans and maintaining single-digit interest rates.

3. Real Estate and Business: The Chamber highlighted the need for reforms in real estate transactions, such as increasing the assessment ratio from 70-30 to 80-20 and maintaining a 100% risk burden for loans above NPR 5 million. It also suggested resuming the issuance of primary shares and revising impractical regulations related to higher purchases.

4. Investment Encouragement: The Chamber recommended facilitating credit flow to the private sector and creating a favorable environment for investment. They emphasized the importance of policy facilitation to boost industrial growth and job creation.

5. Taxation and Trade Policies: Suggestions were made to reduce customs duties, revise tax policies to avoid unnecessary penalties, and eliminate the requirement for a Harmonic Code in local transactions. Additionally, the Chamber proposed measures to reduce trade deficits and support export promotion.

6. Support for Entrepreneurs: The Chamber advised rescheduling loans for blacklisted entrepreneurs and simplifying procedures to access credit during economic downturns.

In response, Prime Minister Oli acknowledged the Chamber’s recommendations and emphasized that the government’s top priorities include fostering entrepreneurship and job creation. He assured that the government would evaluate the overall economic situation and make informed policy decisions.

Challenges and Economic Indicators:

1. The Chamber highlighted ongoing challenges, including a contraction in economic activity, the imbalance between demand and supply, and the need for financial facilitation in the private sector.

2. Statistics from the Department of Statistics reveal contraction in sectors such as construction and wholesale trade, underscoring the urgency of the proposed measures.

Rajeshkaji Shrestha, Chairman of the Chamber Advisory Council, underscored the importance of facilitating the private sector’s contribution to economic growth and job creation, stressing the need for a conducive business environment to stem youth migration.

The Chamber expressed hope that Prime Minister Oli will provide the necessary support to address the current economic challenges and contribute to national development through the effective implementation of the recommendations.