Kathmandu — The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged political parties to clearly incorporate policies aimed at protecting, promoting, and boosting the morale of the private sector in their election manifestos ahead of the upcoming polls.

Speaking at a press conference titled “The Private Sector in Election Manifestos” held in Kathmandu on Saturday, FNCCI President Chandra Prasad Dhakal warned that Nepal’s overall economic recovery would remain difficult as long as the private sector continues to be neglected. He emphasized that the private sector contributes nearly 81 percent to the country’s Gross Domestic Product and generates about 86 percent of total employment, making its stability critical to the national economy.

Dhakal stated that the morale of the private sector has weakened to an unprecedented level. “Despite adequate liquidity in the banking system, investment has failed to grow, which is a serious warning sign,” he said. “If this situation persists, employment and revenue will further shrink, pushing the country toward economic failure.”

According to FNCCI, protests held on Bhadra 23 and 24 caused direct physical damage worth approximately NPR 36 billion to the private sector, while total economic losses are estimated at nearly NPR 80 billion. The federation noted that post-protest insecurity, policy uncertainty, and lack of investor confidence have further discouraged private investment.

Private Sector Protection and Promotion Plan Proposed

To restore confidence and ensure business security, FNCCI has proposed a Private Sector Protection and Promotion Plan. The plan includes declaring industrial and commercial establishments as peace zones, forming a dedicated industrial security mechanism, and introducing a fast-track, single-window service for rebuilding damaged infrastructure.

The federation has also urged political parties to clearly commit, within their manifestos, to respecting constitutionally guaranteed property rights, ensuring uninterrupted freedom to conduct business, and maintaining policy stability. FNCCI concluded that Nepal’s socialism-oriented economic framework and the three-pillar policy approach have failed to attract the level of investment and employment the country needs.

Legal Reforms and Digital Services Needed

FNCCI has demanded the repeal or amendment of more than a dozen laws, regulations, and procedures that discourage entrepreneurship. It has also recommended fully digitizing all business processes—from registration to closure—through the Nagarik App and abolishing the annual business renewal requirement.

Focus on Agriculture, Tourism, Energy, and Infrastructure

The federation emphasized prioritizing agriculture and tourism as major employment-generating sectors. It proposed initiatives such as the Organic Hills Program, farmer identity cards, digital distribution of subsidies, and export promotion through a “Farm to Gulf” initiative.

In tourism, FNCCI recommended tax incentives and infrastructure support for projects such as hill stations, cable cars, resorts, and teaching hospitals. It also suggested developing Nepal as a destination for wedding and convention tourism.

In the energy and infrastructure sectors, FNCCI called for additional tax incentives to attract private investment in hydropower, greater private sector participation in land acquisition and transmission line construction, and clear operational modalities for major projects including Nijgadh International Airport, Gautam Buddha International Airport, and Pokhara International Airport.

Call for a Simpler and Competitive Tax System

FNCCI urged the government to make the tax system simpler, stable, and competitive. Its proposals include revising the multi-rate VAT system, reducing taxes on productive industries, eliminating double taxation, introducing an umbrella law for non-tax revenues, and offering up to 75 percent income tax exemptions for companies that reinvest profits.

Concluding the press conference, FNCCI stated, “Only when the private sector is secure, respected, and motivated can employment grow, revenue expand, and the vision of a prosperous Nepal be realized. Political parties must therefore present not only private sector–friendly manifestos but also policies that are practical and implementable.”