The expected 6 percent economic growth of the budget prepared between low resources and high aspirations is possible, but the private sector needs to ensure an uninterrupted working environment along with the guarantee of good governance.
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The Federation of Nepal Chamber of Commerce and Industry has stated that the budget for the next financial year is positive. The statement issued by the federation on Saturday stated that the budget has given priority to economic reform considering the private sector as the driver of the economy.
"The budget given priority to the suggestions presented by the federation includes the issue of not making ghost-effective laws and maintaining policy stability in accordance with the demand of permanent and predictable policy," the statement said, "The commitment to gradually implement the recommendations of the High Level Economic Reform Commission is in the budget. It is necessary to implement the necessary suggestions for creating an investment environment and for the expansion of industry and business.'
The federation has also said that the continuous demand raised by entrepreneurs regarding the need for businessmen to get services in one place is partially addressed. It is mentioned in the budget that a one-door system will be established to establish and close
businesses. If these services can be provided through a digital platform like Citizen App, the federation says that it will be more effective.
In the budget, it is said that the laws related to public private partnership will be reformed and revised accordingly. Along with the reform of investment-related laws, it is also necessary to make a commitment to good governance by creating related regulations and procedures," the statement said, "shortening and simplifying the process of EIA, IEE study and approval, making Nepal an excellent destination for foreign direct investment, attracting private sector investment in the development of tourist destinations, recognizing information technology and hotel-resorts as special industries will encourage investors. The federation expects that the system of providing facilities like industries in special economic zones will have a positive effect on the productive sector if more than one percent is exported. The Federation concludes that the policy of adopting the concept of Industrial 4.0 will help to increase the use of technology.
The Federation says that the provisions of the budget to provide similar facilities to industries in special economic zones are positive. The Board of Investment has been empowered to facilitate foreign investment. However, due to the lack of integrated law, single point service and effective mechanism, investment is not attracted, it is necessary to integrate related agencies such as the Investment Board, Industry Department and make integrated service and legal management.
Incubation centers will be operated in collaboration with the government, universities and the private sector to make the Gen G generation enterprising, encourage innovation-based startups with interest rates, and start-up businesses with an annual turnover of up to 100 million won will be exempted from income tax for five years, which will attract the young generation to business.
The Federation also says that the announcement to simplify the procedures to facilitate the promotion of micro, domestic and small medium industries and the collection, transportation and use of native wood is positive.
The federation has also said that it is useful to encourage the seasoning industry to increase the quality production and consumption of wood and wood-based materials in the country.
"The federation, which is taking initiatives to cooperate with the government for policy ease in business promotion by establishing the Women Entrepreneur Development Center, has been encouraged by the provision of exemption for women entrepreneurs in business registration," the statement of the federation said, "More provisions are needed to increase access to the market and capital for women entrepreneurs." Although encouraging young people who have returned from abroad to enter the enterprise is positive, the provision that one of the dependent families who send remittances through formal means while abroad can start an enterprise at a discount will give more results. The federation suggests that it will be more effective.
