KATHMANDU, JANUARY 27
Private sector representatives have expressed concern over the increased risk to investment due to political instability in the country.
Speaking at an interaction programme titled 'Unity among the private sector on economic issues and upcoming agenda', organised by the Society of Economic Journalists' Nepal (SEJON) here today, private sector representatives expressed their frustration over political instability.
President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Shekhar Golchha, said that there is no alternative to the business sector uniting as the government and the political parties were on the verge of splitting and ruining the private sector's investments.
Stating that the federation is now in favour of moving forward as a united front, he said that discussions are underway with the Nepal Chamber of Commerce (NCC) and the Confederation of Nepalese Industries (CNI) in this regard.
He further argued that unless the entire private sector is united, it will fall victim to unstable politics.
Similarly, NCC Chairman Rajesh Kazi Shrestha admitted that the government is not listening to their demands as the voices of the private sector are scattered.
He further claimed that while the private sector's consensus on budget, monetary policy and post-lockdown recovery has yielded positive results, the government has been reluctant to implement it.
In the meantime, Senior Vice-President of the CNI, Bishnu Agrawal, said that the industrialists and entrepreneurs in Nepal are facing difficulties, which has created an unfavourable environment for investment.
He said that the businessmen are being discouraged by political stunts of market inspection. He claimed that instead of monitoring the market to regulate it, the government is conducting market monitoring only for show.
Meanwhile, economist Posh Raj Pandey said that the current state of dissolution of the Parliament has led to political instability in the country. He said that he sees uncertainty in the country despite the court's decision on the issue. He expressed his belief that the recent developments will deter investors from making investment in the country in the near future.
He opined investors will only be focused on short-term investments because of the current scenario.
"The bull run in the stock market that booming real estate show that investors are now looking for a place where they can secure immediate profits, and not interested in investment in areas of long-term importance," he said.
He said such investments, however, will not have a long-term positive impact on the economy.
A version of this article appears in the print on January 28, 2021, of The Himalayan Times.