Kathmandu, August 7 :

Senior Maoist leader and second in command in the party Dr Baburam Bhattarai today categorically said that Communist Party of Nepal (CPN-Maoist) would encourage ‘national capitalists’ to boost economy through effective utilisation of indigenous resources.

He said this while addressing hundreds of businesspersons gathered in the capital for the 40th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) today.

However, Dr Bhattarai said that without changing the ‘political superstructure’, the economic sector would not awaken. He recalled that Nepal’s economy was at par with European countries’ during the 18th century, but today it is in a miserable state, thanks to wrong policies and its weak implementation, coupled with bad governance.

Peaceful settlement of talks between the Seven Party Alliance (SPA) and the Maoists would result in better business environment that will gradually open the doors of opportunities for socio-economic advancement with a new vision, said Dr Bhattarai.

Chandi Raj Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said due to the failure of the state to act timely in resolving business sector’s problems, economy is in a dismal scenario. Dhakal said that the Maoist party should show its commitment to protect the private sector which is the lifeblood of the national economy. He urged all concerned to make the SPA and Maoist talks successful as every sector of the economy is not in sound health, thanks to conflict and weak economic policies. Private sector stands for peace, he stressed.

Dhakal expressed concerns over the Maoist-related trade unions that are creating industrial unrests that will ultimately kill the ‘bread and butter’ of employees and employers both at one go. Therefore, labour issues should be settled through negotiations, he requested employees. Maoists and the government both have to come out clearly on how business sector can be boosted, Dhakal said.

Dr Bhattarai said that private sector is an engine for growth and without its development, economy will not get a boost. “Both capitalists and labourers should go jointly for a sound industrialisation process,” he said adding that if labourers are discouraged and are not given sufficient allowance for their survival, they may resort to ‘pressure’ tactics which is natural.

The role of the state, as per the Maoist policy, would be to invest in certain infrastructure sectors wherein huge capital is needed. Dr Bhattarai attributed the fragile economic state to institutional bottlenecks.

All sectors should not be allowed for foreign investment and the state needs to be selective, said Dr Bhattarai. We need to focus on technology transfer, employment generation and investment in productive sectors for sustainable economy, he suggested. He was of the view that small and medium enterprises should be promoted with sound policies and effective implementation. “Revenue generation should not be concentrated on customs but other sources like excise duty.”