Acceleration in development activities, high economic growth rate, large-scale economy and in light of all this, widespread employment creation with high wages - this is the expectation that Nepali society has been holding for a long time. Not only because of the universal desire for development and prosperity, but also because the period in which demographic benefits can be reaped is narrowing, we must accelerate economic activities. The Rashtriya Swayamsevak Sangh (RSS) that has now formed a powerful government had also presented a target in the manifesto released before the February 21 election to bring the size of the economy close to US$100 billion through an average economic growth of seven percent in five to seven years. The citizens have faith that the government will make firm efforts towards its goal and that the goal will be achieved. In this context, it is essential to boost the morale of the private sector and encourage it to invest. The strategy that the government will set through the upcoming policies and programs and budget for that is currently awaited.

Even though interest rates have reached the lowest point in a decade, the demand for credit has not increased as expected. The message it gives is clear - the private sector is not enthusiastic about investment. The private sector's reluctance to take loans means that an investment environment has not been created. This is not only an internal issue that the private sector experiences, but also an external issue that can be analyzed based on some events. For example, the private sector had to bear the brunt of the Covid-19 pandemic, the subsequent demand control policy adopted by the government, and the Gen-G movement in Bhadau. There were arson and looting in commercial and industrial centers. The private sector suffered losses of more than Rs 30 billion during the Gen-G movement. The government's goal of bringing about comprehensive reforms in the economy cannot be achieved as long as the morale of the private sector, which accounts for about 81 percent of the economy, remains weak.

The private sector is more suspicious after the government has already increased the number of arrests for various financial irregularities. There has been a demand for the private sector to listen and arrest first. The state can and should investigate wrongdoing in any sector and in which any person is involved. This establishes the belief that those who make mistakes will be punished at any time. But the priority given by the government at this time seems to have sent a message to the private sector that the government has interfered with or taken a negative view of the private sector as a whole. If such a message becomes stronger, the private sector will become more frightened and discouraged. Capital flight and business closure may also occur. Therefore, current and future investigations should not be conducted with the aim of creating panic, but should be in accordance with public needs, the concept of the rule of law, established methods and procedures. And, the government should establish that this is a step taken to create a good business environment.

A stable and strong government has been formed at this time. Now it should adopt a stable policy and encourage the private sector. For that, it is imperative to guarantee the security of the private sector.   The goals mentioned in the RSVP's election manifesto will not be possible through the government's sole efforts. The private sector is of great importance for a country like ours, where revenues are already barely covering current expenses and where we have to partially rely on loans for daily expenses and development expenses. Because, the private sector invests capital by taking risks. It imports technology. It pays taxes and strengthens the government's coffers. It creates jobs. It increases production and plays a role in import substitution. According to the concept of public-private partnership, they also help in infrastructure construction. Therefore, a state with weak investment capacity should take the private sector as a strong vehicle and create a private sector-friendly environment.

The private sector has been looking for a stable government and through it, a stable and predictable policy for a long time. At this time, a stable and strong government has been formed. Now it should take a stable policy and encourage the private sector by convincing it. For that, it is mandatory to guarantee security to the private sector. In addition, policies such as grants, tax exemptions and concessions can be taken. There has been criticism that there is a cumbersome process in Nepal when it comes to bringing in NRN or foreign investment. Therefore, the government should ensure a smooth process. The government should reform the laws and create a private sector-friendly environment. The productive economy should be promoted and the trade-oriented economy should be discouraged.

At the same time, the situation where private sector proposals have been stalled for a long time should be broken. For example, currently 98 companies have applied to the Nepal Securities Board for an initial public offering (IPO) of more than 66 billion rupees. But due to the lack of a decision on this for a long time, the mobilization of capital equivalent to the mentioned amount by the private sector has been postponed. In addition, their morale has also been negatively affected. Therefore, a structure should be created to make decisions quickly on the investment proposal file. 

Not only large industrialists and businessmen, but also small enterprises and startups should be provided with easy registration, easy arrangements for taking loans, and hassle-free exit.