Kathmandu. Nepal Chamber of Commerce (NCC) President Kamlesh Kumar Agrawal has insisted on the need of creating an environment conducive to boost the confidence of the investors for the country’s economic development and prosperity.

At a discussion and dialogue on ‘Expansion of Economic and Business Activities, Creation of Investment-Friendly Environment and Contemporary Economic Issues’ organized by Nepal Chamber of Commerce here today, Chairman Agrawal said although the budget for the coming fiscal year 2083/84 had indicated economic reforms, collaboration between the government and private sector was essential for its effective implementation.

Chairman Agrawal said that the existing anti-money laundering system has created unnecessary fear among the businessmen and the private sector’s risk-bearing capacity would be weakened in the absence of a dignified business and industrial environment. According to him, the state mechanism had not been able to systematically record the property earned through industry, trade, agriculture and ancestral transfer before the Money Laundering Act came into effect in 2064 BS.

Stating that the damage caused to private property and industry and business during the recent agitation has weakened the confidence of the investors, Agrawal said that an insurance-based protection system was necessary for investment security. He stressed on the need of assessing the economic and social impact of any new policy before implementing it.

Stating that the decision to suspend registration of public vehicles has had a negative impact on the automobile sector, Agrawal said that adequate consultation, prior notice and transitional arrangements should be ensured with the private sector while making policy changes. He pointed out the need of the government to pay attention to formulate investment-friendly laws, reform in tax system, increase in capital expenditure, end double interference among regulators and create environment conducive for capital formation.

Chairman Agrawal suggested the implementation of the ‘Single ISIN’ system to make the share market more transparent and systematic. Diversifying energy sources and expanding the use of electric vehicles and equipment, he said the free trade agreement between India and the European Union would pose a challenge to Nepal’s exports.

Chairman Agrawal said that a special strategy was needed to enhance the competitive capacity of the readymade garment, carpet and handicraft sector. He also stressed on providing easy loans to the private sector by maintaining effective coordination between fiscal and monetary policies, setting up a permanent mechanism for regular dialogue on revenue-related issues and implementing the report of the High Level Economic Reform Suggestions Commission at the earliest.

On the occasion, Nepal Chamber of Commerce immediate past president Rajendra Malla and former president Rajesh Kaji Shrestha urged the government to create investment-friendly environment for expanding economic activities and boosting the morale of private sector. They were of the view that policies to encourage investors and entrepreneurs, legal clarity, conducive business environment and regular dialogue with the private sector were necessary.

The entrepreneurs and industrialists were of the view that the economy should be made dynamic through policy stability, easy loan, reform in tax system, encouragement to capital formation and creating a friendly environment for the private sector.