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Kathmandu, Nepal, December 5, 2022: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the representative organization of Nepalese business and industry sectors, has requested the Finance Minister Janardan Sharma for cooperation and coordination to protect the country's economy.
FNCCI delegation led by its President Shekhar Golcha met Finance Minister Sharma on Monday to request to protect the national economy by addressing the outstanding problems faced by the business communities in Nepal.
During the meeting, the FNCCI president Golchha said that the monetary policy of the ongoing fiscal year including the current quarterly review of the monitory policy failed to address the existing problems of the economic sector of the country.
During the meeting, the FNCCI delegation also demanded to decrease interest rates expressing dissatisfaction over the quarterly review in monetary policy. The FNCCI has a demand that mandatory cash ratio should be reduced by one percentage point.
“The multi-faceted effects on the economy have to be addressed immediately not only to protect the business communities but also the national economy,” FNCCI president Golchha said. Fluctuations in interest rates, national and international financial discomfort, internationally raised fuel and raw material prices, and logistics and freight charges have created a big problem to the business community.
“The government and the Nepal Rastra Bank (NRB), the central bank of Nepal, should take immediate steps to protect the economy as the multifaceted risks increased during the period of about a year after they started to control the market directly and indirectly,” he said adding the current capital guidelines 2079BS implemented at a time when private sector investment is shrinking and revenues are continuously decreasing has put pressure on the country's economy adding complexity to business sector.”
Highlighting about the current economic condition of the country, FNCCI president Golchha said that the revenue cannot cover even the recurrent expenses and the price increase is the highest since seven years and the private sector is shrinking. The mismatch between the determination of the estimated financial statement, the determination of the actual required limit of working capital and the lack of working capital has caused difficulties in the operation of the industry, have also caused problems to the business community,” he said.
During the meeting, the FNCCI team also demanded to postpone the implementation of current capital guidelines 2079BS for at least two years and to take initiative to reform the system that could affect the private sector.
Responding to the concerns of the FNCCI delegation, Finance Minister Sharma vowed to take initiative to address the problems faced by the business community. During the function he also underlined the need of cooperation between government, the central bank and the private sector to achieve the goal of prosperity in the country by addressing the current problem in the economic sector of the country.
