Kathmandu: Officials and members of the Nepal Chamber of Commerce congratulated the newly appointed Prime Minister KP Sharma Oli and presented him with a list of 43 recommendations aimed at improving the country’s political stability and economic health. The delegation, led by Chairman Kamlesh Kumar Agrawal, met with Prime Minister Oli at his residence in Baluwatar.
The Chamber’s Recommendations:
1. Economic Stability: The Chamber suggested that the Prime Minister work to align the budget with monetary policy to stabilize the economy, which has been unstable for almost four years due to the COVID-19 pandemic, the Russia-Ukraine conflict, and strict economic policies.
2. Financial Facilitation: They recommended making it easier for the private sector, which makes up about 81% of the economy, to access loans and keep interest rates low.
3. Real Estate and Business: The Chamber proposed reforms for real estate transactions, such as increasing the property value assessment ratio from 70-30 to 80-20, and keeping a 100% risk burden for loans over NPR 5 million. They also suggested restarting the issuance of primary shares and updating regulations related to high-value purchases.
4. Investment Encouragement: The Chamber advised facilitating credit flow to the private sector and creating a business-friendly environment to encourage investment, industrial growth, and job creation.
5. Taxation and Trade Policies: They proposed reducing customs duties, revising tax policies to avoid unnecessary penalties, and removing the requirement for a Harmonic Code in local transactions. They also suggested measures to reduce the trade deficit and support exports.
6. Support for Entrepreneurs: The Chamber recommended rescheduling loans for blacklisted entrepreneurs and simplifying access to credit during economic downturns.
In Response: Prime Minister Oli acknowledged the Chamber’s recommendations and stated that his government’s main goals are to support entrepreneurship and create jobs. He promised that the government would review the economic situation and make thoughtful policy decisions.
Challenges and Economic Indicators:
1. The Chamber pointed out ongoing economic issues, including decreased economic activity, a mismatch between supply and demand, and the need for better financial support for the private sector.
2. Statistics show a decline in sectors like construction and wholesale trade, highlighting the need for the recommended measures.
Rajeshkaji Shrestha, Chairman of the Chamber Advisory Council, stressed the importance of supporting the private sector to boost economic growth and job creation, and to prevent youth migration.
The Chamber hopes that Prime Minister Oli will provide the support needed to overcome current economic challenges and help with national development through effective implementation of these recommendations.
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