Political interference, labor unrest to be blamed for slowing economy: Pvt sector

At a time when the government seeking more investments from the private sector, entrepreneurs have expressed concern over increasing labor unrest and political interference which has weakened the capacity of the private sector.
“We haven´t been able to utilize the resources available in the country given the deepening political instability and politicized institutions -- both in the government and private sector,” Suresh Kumar Basnet, said president of Nepal Chamber of Commerce (NCC) on the occasion of 60th Chamber Day on Saturday. Basnet also appealed to all the political parties to forge consensus to end the current deadlock.
Highlighting the potential for investment in areas such as agriculture, tourism, education and health, Basnet put the blame on government and political parties and their “uncooperative” attitude toward private sector for deteriorating investment climate and industrial output in the country.
“The government is only focusing its efforts at boosting revenue collection ignoring the plights of the private sector, which is the crucial component the economy. This has dashed the confidence of business people,” Basnet added.
NCC, the oldest business association in the country, is the representative body of more than 1,600 individuals and 8,000 registered firms across the country.
Suraj Vaidya, president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said that the country´s economic issues have been put on the backburner due to the ongoing political deadlock.
“The government has given us nothing in return for the revenue we pay to the government. We want the government to be more practical and friendly toward the private sector which is an important pillar of the economy,” said Vaidya.
Business leaders have also complained about the increasing influence of political parties in business enterprises. “The rising cases of extortion and intimidation by political cadres have also weakened the morale of the business community,” Basnet added.
Industry minister Anil Kumar Jha assured the private sector that the government was always ready to provide them security and punish those involved in extortion and intimidation.
“The government will leave no stone unturned to take action against those involved in extorting and intimidating business people,” said Jha.
Business leaders also urged the government to bring a full-fledged budget in order to give a boost to the slowing economic activities in the country.
“In the absence of a full-fledged budget, we have been witnessing multiple adverse effects in the economy. Hence, all the political parties should forge consensus to bring out the full-fledged budget for this fiscal year,” said Vaidya.