Kathmandu: Experts and private sector representatives have expressed concern over the increased risk of investment flight due to political instability in the country. Speaking at an interaction organized by the Economic Journalists’ Society (SEJON) on private sector unity and next steps in economic issues, he said that political parties and the government had created political instability and frustration.
President of the Federation of Nepalese Chambers of Commerce and Industry, Shekhar Golchha, said that there was no alternative but to unite the business sector as the government and the parties were on the verge of splitting and ruling the private sector.
Stating that the federation is now in favor of working unity with the same views of the private sector, he said that discussions are underway with the Nepal Chamber of Commerce and the Confederation of Nepalese Industries.
He informed that the federation is now preparing a ‘private sector vision’ by combining the same agenda of all the three organizations. He argues that unless the private sector is united, the private sector will be the victim of unstable politics.
Chairman of the Nepal Chamber of Commerce Rajesh Kaji Shrestha admitted that the government was not listening to the demand as the private sector could not have a single voice.
He referred to the goods coming from China and said that there was no concrete initiative in that regard. Stating that the private sector’s consensus on budget, monetary policy and post-lockout recovery has yielded positive results, the government has been reluctant to implement it.
Senior Vice President of the Confederation of Nepalese Industries, Binnu Agrawal, said that the entrepreneurs in Nepal are facing difficulties step by step, adding that it has not created an investment environment.
He said that the businessmen are being discouraged by such steps for some political stands by raising the habit of criminalization agreement as soon as they go for market monitoring. He said that he would never support those who did wrong and at least urged them to understand the psychology of behaving like a criminal until proven guilty.
Economist Poshraj Pandey said that the current state of dissolution of the parliament has led to political instability in the next few years. He sees uncertainty in the country despite the court’s decision in this regard. He estimates that this will not attract investment within the country and will lead to an exodus.
He sees that even the investment in the country will not be in the long-term sector but only in the fast-profit sector. “You see in the stock market that in real estate, investors are now looking for a place where they can secure immediate profits, not invest in areas of long-term importance,” he says.
On the other hand, he said that the government’s expenditure would be limited to popular programs and vote-buying, which would affect capital expenditure. He says even such investment will not have a long-term positive impact on the economy.