The private sector, which contributes 81 percent to the economy and 86 percent to employment, plays a significant role in job creation, revenue mobilization, infrastructure construction, and the uninterrupted supply of goods and services. The private sector contributes about 80 percent of the income tax collected in the country.

Although the private sector is essential for building a capable state by contributing so much to the economy, this sector has traditionally been neglected. 

In the 75 years of Nepali politics, there have been more than a dozen decisive and transformative movements. However, timely improvements in the livelihood of the common people could not be achieved. Other freedoms were guaranteed. However, there were not enough career and employment opportunities for the citizens. Since the private sector could not work unhindered, sufficient employment and self-employment opportunities could not be created. And disappointment remained. Not only this, the perception of the private sector towards the government and society could not be positive. 

The private sector, which is usually affected by movements, was even more affected by the movements and demonstrations of 23 and 24 Bhadra. According to a study by the Federation of Nepalese Chambers of Commerce and Industry, direct material damage of about 38 billion rupees has been caused during the movement. The private sector had to bear losses of about 80 billion rupees. However, the damage will not stop there.

There are many challenges to prosperity through peace and stability. Even if the collapsed private sector structures are rebuilt, there is no guarantee that they will not burn again. The morale of the private sector is at its lowest, and there is a risk of capital flight. Even if there is sufficient investable money in banks, the private sector is not ready to take loans and start businesses. If the private sector continues to be discouraged in this way, employment, revenue, and service flow will further shrink, and the country will be headed towards failure. 

Considering this sensitivity, political parties should play a role in raising the morale of entrepreneurs and businessmen, the country's largest employers, service providers, infrastructure builders, revenue contributors, and wealth creators. It is necessary to ensure that the parties' manifestos for the upcoming elections allow them to increase investment, conduct business without hindrance, and respect the natural rights related to property rights. 

Economic policy and the role of the private sector

Due to the constitutional system, geopolitical situation, public expectations, and traditional political party principles, most political parties seem to be confused about the issues of liberal economy, the role of the private sector, and social justice. If the parties are not clear on this issue, the essence of the movement of the young generation (Gen-G) cannot be built, which is the essence of good governance, employment and sufficient opportunities for self-employment. For this, the following issues should be adopted in the manifesto of the parties:

A liberal and inclusive economic policy based on innovation is needed to encourage entrepreneurs and businessmen, taking into account the needs of Nepal and the global environment. To ensure easy access of all classes, genders and communities to the economy and means of production, facilitation should be provided through policy and technology, and reservations should be made for the economically backward or marginalized communities. The three-pillar economic policy adopted in the current situation and the socialist-oriented economy have basically affected foreign investment. In the coming days, it is necessary to implement a liberal and inclusive economy based on innovation in private-public partnerships.

Protection and promotion of the private sector 

The young generation expects entrepreneurship and employment to be ensured through the development of businesses based on new technology. Starting new types of businesses or making traditional businesses more effective, faster and competitive through the use of the Internet, artificial intelligence, cloud computing, mobile apps, digital payments, data analysis, etc. is the concept of new technology.

It is imperative to utilize the strength of the private sector to realize the expectations of the young generation for entrepreneurship, employment and multi-sectoral economic and social development. However, the morale of the private sector has been weakened by the attacks on the private sector during the recent youth movement, the series of attacks and arson on industries and commercial establishments that are the basis of employment, and the private residences of entrepreneurs. Therefore, the courage and desire to invest heavily in the field of job creation as expected by the young generation has not yet fully awakened in the private sector.

Therefore, even if there is no monetary value for the pain and loss suffered by the private sector due to the movement, there should be a commitment from the parties to not allow such incidents to be repeated in the coming days. To boost morale, countries affected by the protests should adopt the efforts of the private sector to protect and promote it as an experience and implement it by preparing a ‘Private Sector Protection and Promotion Plan’. In the

plan, an Industrial and Commercial Security Directorate should be established at the center under the Armed Police Force and its units should be established in each district for the protection of the private property of industrial and commercial establishments and businessmen. Industrial and commercial establishments should be declared as areas of special importance or peace zones. There should be a legal system that prohibits any kind of violent and chaotic activities in industries or establishments.

Industries, establishments or commercial buildings should be classified based on the contribution made by the private sector to the country and provided with the same level of security by keeping them in the ‘highly sensitive’ category. A rapid deployment team with the necessary equipment and vehicles (quick response vans) should be arranged so that they can be mobilized immediately, paying attention to security. A policy of zero sensitivity should be adopted regarding attacks, vandalism and arson on industrial and commercial establishments and private property and residences. The party's manifesto should also include the protection and assurance of the right to property as provided by the constitution.

Good governance and smart government services

Quality public service delivery, increasing emigration of youth and public frustration are directly linked to good governance. Special programs to ensure good governance should be included in the manifesto. The Nagarik app should be completely 'digitalized' by adding an icon called 'Business' and making arrangements for all work from business registration to exit and adjustment through this app within a year.

The existing system of having businessmen renew their business 'yearly' should be abolished from the next fiscal year if the business is running continuously, including tax payments. Until the integrated automated system is implemented, arrangements should be made for micro, household and small entrepreneurs to register their business and pay revenue only at the local ward office. A data storage, security and exchange mechanism should be created and put into use for the record, protection, use and updating of personal details certificates that citizens have to submit to the relevant bodies to receive public services.

An environment should be created in government agencies and organizations that provide public services to the general public to provide uninterrupted services. If the service cannot be provided as per the demand, a system should be created to inform the service recipient with the reason within a maximum of one week, based on the nature of the file. 

Investment-Friendly Nepal Program 

In a context where foreign aid is also decreasing along with the limitation of internal resources, an investment promotion decade should be declared to attract domestic and foreign investment and technology, and special programs should be run during that period to ensure policy stability. Laws such as land, forest, environment, public procurement have not been amended.

Therefore, all laws directly related to business environment improvement and investment promotion should be reformed and integrated laws should be made to ensure policy transparency and business security. For this, the bilateral investment agreement passed by the Council of Ministers should be implemented. A powerful Investment Promotion and Protection Board should be established with the participation of the private sector by integrating the Investment Board and the Department of Industry and all services should be provided from the same center.

The government has been facing a shortage of resources due to low revenue and increasing pressure on principal and interest payments on foreign loans. Now, a private and public investment promotion action plan should be prepared and implemented through the Investment Protection and Promotion Board to involve the private sector in development projects. 

Promotion of industries

There should be a provision that the facilities given to manufacturing industries by the Industrial Business Act and other laws should not be curtailed by the Economic Act. A production-based concession program should be operated continuously for 10 years, covering high value-added manufacturing sectors. As was implemented in India covering 14 manufacturing sectors, this should be given priority in the context of attracting five times more investment in a year. A production-based incentive program should be implemented for import-substituting industries. 

Industrial Corridor Special Program 

The concept of an open special economic zone should be implemented by bringing special programs targeting industries in the roads from the Indian border to Churephedi, the North-South Road Corridor, potential areas of the Mid-Hill Highway and other potential corridors.

Nepal is preparing to upgrade from a least developed country by November 2026. The private sector is being discouraged due to low demand and lack of policy stability, which has been further affected by the agitations and demonstrations on 23 and 24 Bhadra. Therefore, it seems that the upgrade period should be postponed for three years. 

Since electricity is also an industrial raw material, manufacturing industries should be given appropriate discounts on electricity tariffs by setting a time limit of up to ten years. Manufacturing industries that provide more than 100 jobs, service industries including tourism, and information technology industries should be provided with income tax exemptions and other facilities.

Startup and Information Technology

The relevant laws should be revised and amended for the implementation of the National Startup Enterprise Policy-2081. 'Startup Growth Centers' should be established in all provinces in collaboration with the private sector. The tax exemption facility currently being given for the promotion of startup enterprises should be provided for 10 years and a 50 percent tax exemption should be provided for another 5 years.

Municipalities that increase entrepreneurship by using technology should be rewarded. The 'Hundred Startups, Hundred Investors' program, which aims to attract private sector investment in at least one hundred startups every year, will encourage the development and expansion of this sector.

Arrangements should be made for the mandatory use of software produced in Nepal in public and private institutions. Information technology-related industries to be established in the hilly areas should be provided with land, electricity and road facilities.

The private sector should be provided with concessions from the federal, provincial and local levels to establish information technology malls in urban areas to provide infrastructure facilities including offices for youth to start and operate information technology enterprises. Inter-governmental coordination is indispensable to provide facilities such as land, tax exemptions and incentives required to establish at least one international-level information technology-related school in all provinces. 

Excavation of ballast, gravel and stones without damaging the environment

It is necessary to formulate a special policy regarding the excavation, sale, distribution and export of ballast, gravel and stones without damaging the environment. Ensuring domestic consumption and allowing the excess quantity to be exported, a certain percentage of the revenue collected from this should be used for the conservation of Chure and the construction of embankments of related rivers. Nepali missions abroad should be mobilized for the promotion of domestic products. Relations with international bodies should be focused on economic benefits and export expansion. 

Agriculture

For the development of a modern and scientific agricultural system, the current traditional and subsistence-oriented agricultural system should be replaced by agricultural mechanization and advanced technology. A special program should be introduced to promote organic cash crop production by announcing the 'Organic Hills' program.

The process of issuing farmer identity cards should be completed quickly and facilities such as fertilizers, seeds, transportation subsidies, concessional loans, agricultural insurance, training, etc. provided to farmers should be linked to the identity card. To prevent misuse, subsidies flowing in the agricultural sector should be made available to actual farmers and digital technology should be used in distribution by linking the subsidies with the production. All the processes and policies adopted so far for the development of the agricultural sector should be restructured and reform programs should be implemented.

To promote Nepali production, a 'Farm to Gulf' program should be launched and arrangements should be made for the smooth export of agricultural products and drinking water to Gulf countries. 

Tourism

Although the Industrial and Business Act has placed the tourism-related industry among the priority industries, other facilities such as electricity are not available for those industries, so they should be provided. To organize international-level sports competitions, especially those suitable for the Himalayan and hilly regions, sports venues should be constructed and operated in public-private partnership.

Hotels, resorts, theme parks, cable cars, polytechnic institutes, other educational institutions, teaching hospitals, and data centers to be established in hill stations should be provided with access roads and electricity facilities and a 50 percent exemption on income tax should be provided for at least the first five years. Nepal should be developed as a destination for weddings, meetings, conferences, tourism, and delegates coming to participate in international conferences should be provided with visa exemptions, easy import and export of jewelry, and other easy immigration facilities. 

Arrangements should be made for tourists arriving by land to visit Nepal without any hindrance by pasting arrival stickers at border checkpoints. Foreign filmmakers coming to Nepal to film should be facilitated in terms of entry permits for equipment brought into Nepal, easy access to attractive filming locations, and security at the government level.

Energy and Infrastructure

Obstacles such as legal, procedural, and inter-agency coordination that arise during the construction of infrastructure projects that are important for the country's economic development should be resolved in a timely manner and the project should be completed. The Electricity Act-2049 provides that companies that construct and operate hydropower projects by mid-2082 Ashar will receive a full income tax exemption for 10 years and a 50 percent rate for 10 to 15 years, and a refund of value-added tax, but that deadline should be extended by 10 years to 2092.

To attract private sector investment in reservoir projects and prioritize construction, additional tax exemption facilities should be provided, and infrastructure such as land acquisition and road access should be provided for project construction. There should be arrangements to provide transmission line construction and electricity trading to the private sector. Although a policy has been made regarding open access for the private sector to consume and export electricity by paying a wheeling charge, the relevant laws should be amended and implemented immediately for the implementation of that policy.

To increase the consumption of domestic cement, rods and other construction materials, and to provide strong structures, gradually sloping roads should be constructed in hilly areas and other areas. As the construction of the Nijgadh-Kathmandu fast track is underway, the construction modality of the proposed Nijgadh International Airport should be determined for its maximum utilization after construction, and the airport construction work should be given high priority. For the proper operation of Gautam Buddha and Pokhara International Airports, appropriate modalities should be determined and arrangements should be made for smooth operation with necessary tax exemptions.