Kathmandu, Nepal: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Anjan Shrestha, has expressed optimism that the government's decision to increase capital expenditure in the budget for the fiscal year 2083/84 BS will help revitalize the private sector and strengthen the national economy.
Addressing the 19th Annual General Meeting of the Nepal Land and Housing Developers' Federation in Kathmandu on Saturday, Shrestha described the increase in capital spending as a positive step. He said that even a modest rise in development expenditure would contribute to making the private sector more dynamic and productive.
Welcoming the government's decision to increase investment in infrastructure, reduce income tax, and prioritize the information technology sector, he said these measures would support economic growth and encourage private sector participation.
Shrestha also stressed the need to address the growing trend of Nepalis seeking employment abroad and the country's heavy reliance on imported consumer goods, which currently account for nearly 70 percent of domestic consumption.
"It is encouraging that the budget has introduced a provision allowing foreign nationals to acquire houses in Nepal on a lease basis, with the objective of promoting the development of planned and well-managed urban settlements," he said.
He further reiterated FNCCI's commitment to addressing the concerns and challenges facing the real estate sector and supporting policies that promote sustainable growth.
Speaking at the event, Chairperson of the Nepal Land and Housing Developers' Federation, Bishnu Prasad Ghimire, welcomed the budget's emphasis on integrated urban development, describing it as a positive policy initiative.
Similarly, President of the Confederation of Nepalese Industries (CNI), Birendra Raj Pandey, urged the government to introduce additional measures to stimulate economic activity and enhance private sector confidence.
Senior Vice-President of the Nepal Chamber of Commerce, Deepak Malhotra, said the private sector remains hopeful about the current government, citing the stability it has provided after a prolonged period of uncertainty.
Welcoming the government's decision to allocate approximately Rs 400 billion for physical infrastructure development, Malhotra said increased investment in infrastructure would help accelerate economic growth and create new opportunities for businesses and investors.
