Private Sector Morale and Investment Conference

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.

However, the view and behavior of the state and the agencies under it are very negative towards the private sector, which contributes significantly to revenue, employment and the national economy. In addition, the prolonged economic slowdown has dampened investor sentiment in the private sector, one of the economy's two wheels. The government and the agencies under it do not seem to have taken any steps in an effort to boost the morale of private investors and businessmen. Currently, the government and the central bank are presenting the balance of payments created due to the increasing remittance flow and the controlled import trade and the significantly increased foreign exchange reserves and low imports as indicators of the improvement of the overall economy. However, in the domestic market, the problem that started with cooperatives has now reached large industries. As the market becomes unviable and the capital mobilization in the market becomes weak, the cycle of payments deteriorates, the biggest hit of which is the entrepreneur. It has been a long time since its effects were seen in banks and financial institutions. The increasing NPAs in the banks also do not bode well.

In addition, banks and financial institutions have about 5 billion rupees of investable funds, but due to the lack of an investment-friendly environment in the country and the weakening of the morale of entrepreneurs, there is a problem in mobilizing that amount. Despite the potential, entrepreneurs are reluctant to make new investments and increase investment in existing industries. Manufacturing industries are operating at only 40 to 50 percent of their capacity. A big problem has been created not only in large and medium industries but also in small businesses. Estimates show that around 15 percent of shops and businesses have closed their shutters. There, even agricultural products have become difficult to find a market. In this way, if the government fails to address the policy and take the necessary steps when there is difficulty and disappointment in all three sectors of the economy, the problem will remain. Nepal Rastra Bank or the government's policy facilitation or support is needed in difficult times like this.

With the beginning of the year 2020, the Nepalese economy, which started to suffer from the Covid-19 epidemic, started to relax with the lockdown imposed in March of the same year. After about a year of uncertainty and panic, the business is slowly picking up speed. One year after the epidemic, the Nepalese economy saw an unprecedented boom. The stock market edged closer to 3,200, with real estate trading also picking up significantly. Industrial production, tourist arrivals, imports of goods all saw high growth, which created a ripple effect in the economy. But that growth did not last long.

As fast as the economy took off, it came down just as fast. Due to the tendency of both the government and the private sector to panic a little more when things get difficult and get a little more excited when things get easy, it can be understood that economic difficulties were created immediately after the epidemic. This means that both the government and the private sector will have to work harder to improve the economy and ensure sustainable growth in the economic scenario and instill hope in businessmen and the general public.

Even without weakening the current system, if the government and Nepal Rastra Bank adopt some flexibility, the seeds of improvement in the economy can be sown. For example, if expenses incurred in infrastructure development projects are paid back immediately through value addition, it will increase the flow of money in the market. The amount of payment and VAT refund that the government is making now may not be significant, but it will not only send a positive message to entrepreneurs, but also create momentum in the economy by removing the confusion created by the lack of funds. Similarly, some flexibility can be taken in the payment of interest on loans taken from banks as during the pandemic. This seems to help especially small and medium businesses to get rid of the crisis they are facing.

Recently, the crackdown on entrepreneurs and businessmen is also discouraging the private sector, which contributes more than 81 percent to the economy. Anyone who commits a wrongdoing should be punished, but it is not fair to imprison an enterprising businessman without a thorough investigation or without proving the charges. We should not move in the direction of promoting ghostly laws and unstable political systems. This discourages both domestic and foreign investment. Therefore, the state should arrange a flexible arrangement in this regard. If any entrepreneur is involved in activities contrary to professional conduct, we have no obstacle in taking legal action against him. Federation of Nepal Industry and Commerce is always ready to help in research.

There are some good signs after Dasaintihhar. These are – investable funds in banks, increasing remittance inflows and tourist arrivals and falling inflation. The government should ensure that entrepreneurs can benefit from these facilities. For that, it is necessary to bring the improvements seen in the external sector to the internal sector. While the government itself is saying that the economic indicators are the best, it does not pay attention to why the impact of such good achievements did not reach the private sector and the general public. On the one hand, the government is pointing to the external sector and saying that the economy has improved, while on the other hand, there is a paradoxical situation where the private sector is being harassed.

In today's competitive world and when efforts are being made to attract more direct foreign investment, if we continue to create difficulties in industry and business, no domestic or foreign investment can come. It was also seen that the government agencies discriminated between domestic and foreign investors in some matters. This should not happen, any kind of investment will contribute to the national economy through production and distribution, job creation and distribution and export.

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.0

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.1

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.2

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.3

The government will introduce concepts in revenue collection and capital budgeting, which are expressed through annual policies and programs and budgets. It is the private sector that fills it with life or helps to find the goal. The largest share of government taxes comes from the private sector. He is constantly paying taxes on income tax, corporate tax, customs duty etc. Similarly, the main area of ​​capital budget implementation is the construction of public infrastructure. Its main responsibility lies with the private sector builders.4