Himalayan News Service

Kathmandu, July 24:

Businessmen today strongly urged the government to improve the environment to carry out business operations in a changed competitive atmosphere. At a post-budget interaction held by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), finance minister Madhukar SJB Rana said the government would take entrepreneurs suggestions seriously. Rana highlighted various issues incorporated in the budget to boost business sector. “The budget has major objectives of restoring peace, making private sector an engine of growth and developing Nepal as a transit economy,” said Rana. However, private sector has criticised the budget saying it had failed to incorporate effective provisions to boost the business sector despite it is spelt out as an engine of growth. Chandi Raj Dhakal, president of FNCCI commented that government has not brought out any special package to boost industry, tourism, and readymade garment sector as it had been facing serious problems lately.

Dhakal said that the budget did not incorporate the suggestion of easy exist for sick industries.

He said that opening up the sectors such as retail business, travel and trekking agencies, service business to the foreign investors without making them competitive would lead domestic enterprises towards difficulties. He asked the government not to give discretionary power to tax officials, which will ultimately hit the business sector. He asked the government to make effective mechanisms for local level security management to create sound environment for business operations. Businessmen have doubted the achievement of GDP growth at abut 4.5 per cent in a given clumsy economic environment. Dr Rup Jyoti, assistant minister for finance urged the need to introduce programs to encourage private sector in this competitive environment. He was of the opinion that industry should be promoted towards free-market orientation. “VAT should be developed as a main revenue-generating tool,” he said. Pradeep K Shrestha, former president of FNCCI and first vice-president Diwakar Golchha also spoke on the occasion.