FNCBCI President calls for rethink in South Asia’s trade policies

Kathmandu: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCBCI), urged South Asia to reconsider its trade policies to protect vulnerable sectors while promoting green and inclusive growth. Speaking at the closing of the 15th South Asia Economic Summit on Friday, Dhakal highlighted the region’s slow progress in economic integration over the past decade, despite being one of the fastest-growing globally.

Dhakal expressed concern about the pressure on domestic industries due to reduced tariffs under the South Asian Free Trade Area (SAFTA), which has hindered the growth of local industries in smaller economies like Nepal. He also emphasized the potential of renewable energy in South Asia, particularly hydropower in Nepal, and called for a shared regional energy grid to reduce reliance on fossil fuels.

Addressing climate change, Dhakal warned that the region faces severe impacts but lacks sufficient resources for adaptation. He noted that South Asia needs an estimated $200 billion annually until 2030 to address climate challenges, urging greater regional cooperation and international support for green transformation.