Kathmandu, July 13

A delegation of International Monetary Fund (IMF) led by Gerard J Almekinders, deputy division chief of Asia and Pacific Department, held discussions with office bearers of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on the industrial environment and investment climate in the country.

In the meeting with the IMF delegation, FNCCI Senior Vice-President Shekhar Golchha highlighted that the policy instability and lack of robust infrastructure are the major constraints to accelerate the economic growth in the country by attracting foreign investment.

“The government has taken some initiatives like reforms in laws and policies to improve the investment climate. However, the country still lacks policy stability and political commitment to move forward,” the statement issued by FNCCI has quoted Golchha as saying.

In the meeting, IMF delegation opined that the country should expand investment in human capital and infrastructure to march towards higher growth trajectory. The IMF has also hoped for political stability after the local elections, which is crucial for the implementation of the new Constitution.

Stating that the country has recently embarked on the path towards federal structure, the IMF delegation also said that the government has to prudently manage the resources at the local level and enhance the spending capacity of local units to strengthen the federal system.