NBF, based on private-public partnership, will stimulate dialogue between the government agencies and the private sector. It will identify constraints, limitation and barriers to investment and business and mobilize concerned line agencies to solve the problems. NBF will promote transparency and accountability in business throughout the country and among Nepali parties involved in business overseas.

The statue of NBF has five bodies -- general assembly, steering committee, private sector development committee, working groups and the secretariat. NBF will include major ministries, private sector organizations, experts and representatives of civil society.

"NBF has adopted a check-and-balance policy for balanced growth," said Pratap Kumar Pathak, secretary at the Ministry of Industry. It will not hamper the growth of public, private and cooperative sectors, he said adding it will also protect the rights of the people. He stressed on greater political consensus on the issue. Political commitment is a must for building a good business and investment environment, he said.

Private sector groups -- Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Confederation of Nepalese Industries (CNI) and Nepal Business Initiative (NBI) -- have also supported the move. "If NBF works as a lobby group for our private sector, it will really work," said Narendra Kumar Basnyat of CNI.

However, FNCCI vice-president Pradeep Jung Pandey voiced doubt about NBF's success. "We are facing a shortage of infrastructure, labour and there are strikes and road blockades. What magic can NBF work?" he asked. Due to these problems, the contribution of industrial sector to gross domestic production (GDP) has reduced from 10 per cent to six per cent over the last decade.

National Planning Commission (NPC) vice-president Dr Yuba Raj Khatiwada stressed on making NBF a successful public-private venture. "The Build, Operate and Transfer (BOT) concept is not working properly. I fear NBF could meet the same fate," he said. According to Khatiwada, the government must concentrate on three sectors -- establishment of labour intensive industries, production of energy and physical security of the private sector -- to boost industrial success.

Khatiwada said, "If we ignore the unemployment problem, it cold even threaten democracy and the peace process." According to Nepal Labour Survey 2008, 30 per cent of Nepali youths are unemployed and the figure is higher in towns -- 50 per cent.

Development partners, supporting the idea of forming NBF, said it would boost the confidence of the private sector to compete in the global market. James Brew, advisor of International Finance Corporation (IFC), said, "It will simplify the investment process and promote export."

Chief secretary Madhav Prasad Ghimire said he hoped for NBF’s success in meeting its objectives. "If public and private sectors work together, Nepal will progress" he added.