KATHMANDU, May 5: The government has reaffirmed its commitment to curbing market malpractices by dismantling cartels and tackling policy corruption, with the aim of fostering healthy competition and strengthening private sector-led growth.
Speaking at the 60th Annual General Meeting of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Finance Minister Dr. Swarnim Wagle outlined the government’s vision of a “socialist market economy.” He explained that while the state will maintain a strong presence in essential areas such as education, healthcare, and social security, the private sector will be fully promoted in commercial and production activities.
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Highlighting inefficiencies in the hydropower sector, Wagle noted that a single project currently requires approval from 23 departments and seven ministries. He pledged to eliminate such bureaucratic hurdles through the effective implementation of a “one-stop service.” The government has also set an ambitious target of expanding Nepal’s economy to US $100 billion within the next seven years. Currently, of the country’s GDP of around Rs 6.1 trillion, the government mobilizes only 25–30 percent, while the private sector accounts for the majority.
Wagle emphasized that the public sector alone cannot shoulder the financial burden of large-scale development projects. With annual budget expenditures of Rs 1.9 trillion—of which Rs 1.4 trillion is consumed by mandatory liabilities—and revenue collection at just Rs 1.2 trillion, the government is turning to private investment in infrastructure. To facilitate this, the Ministry of Finance has initiated the process of scrapping 15 acts identified as barriers to private sector participation.
FNCCI President Chandra Prasad Dhakal urged the government to make the upcoming budget a turning point for economic reform. He assured full cooperation from the private sector, noting that with government support, capital worth Rs 40–50 billion could be mobilized for major projects. According to FNCCI, the private sector contributes about 82 percent of Nepal’s GDP and provides 86 percent of employment opportunities. Senior Vice-president Anjan Shrestha, who will soon assume the presidency of FNCCI, pledged to prepare a roadmap aligning with government initiatives to achieve economic growth.
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