Confucius, the Chinese philosopher, believed that true leadership shines through in times of crisis. Those who approach their goals with humility and sincerity are destined for success. In Nepal, FNCCI President Dhakal has exemplified this by guiding the private sector through challenging times.

Since taking on the role of FNCCI president three years ago, President Dhakal has been constantly busy. He assumed office shortly after the COVID-19 pandemic hit Nepal's private sector hard, and his main focus has been on implementing recovery measures to accelerate the growth of private businesses.

With the backing of his FNCCI colleagues and business leaders, Dhakal has actively lobbied political leaders to include concrete economic agendas in party manifestos.

Political parties have largely ignored the private sector's appeals, focusing more on political and ideological issues than economic concerns in their manifestos. This lack of emphasis on economic priorities is concerning for the business community, as it threatens investment, job creation, and economic revival.

As the economy was slowly bouncing back, the Gen Z movement further compounded the challenges faced by Nepal's private sector. The widespread damage caused by the movement dealt a significant blow to private businesses.

In addition to the economic hurdles, President Dhakal's businesses were also targeted and damaged by the protestors, leaving him with little time for rest. Following the establishment of a new interim government, Dhakal promptly began briefing ministers and the prime minister on the private sector's situation, seeking government assistance to restore confidence and stability.

After analyzing the manifestos of political parties, President Dhakal, known for his positive outlook on the future, noted that economic issues have not been given adequate priority in the party manifestos.

During a discussion titled “Economic Agenda in Party Manifestos” organized by the Nepal Economic Journalists Association in Kathmandu on Sunday, President Dhakal expressed his concerns about the trend of political parties focusing more on criticizing each other rather than presenting their own agendas.

He noted that none of the political parties have prioritized the private sector and economic issues in their manifestos.President Dhakal highlighted the common practice in their context where leaders of one political party tend to criticize another party instead of focusing on their own agenda.

He stressed the importance of political parties competing based on their economic agendas and criticized the negative perception that some parties have towards the private sector, which has had adverse effects at times.

President Dhakal questioned why the contributions of the private sector to the state, such as job creation and tax contributions, are not being discussed by political leaders and parties.

He also pointed out the lack of coordination between ministries and the tendency to make decisions for popularity rather than the benefit of the state.

President Dhakal emphasized the need for the state to support and nurture the private sector in order for the economy to thrive.

He called on political parties to include clear policies in their upcoming election manifestos that protect, promote, and uplift the private sector.

FNCCI’s Demand

FNCCI is urging political parties to include private-sector-friendly policies in their election manifestos.

FNCCI President Dhakal stressed the importance of supporting the private sector, which plays a significant role in the country's GDP and employment.

He expressed concerns about the current economic challenges faced by the private sector and emphasized the need for policies to address these issues. The Federation also highlighted the negative impact of recent protests on the private sector, resulting in substantial losses and investor uncertainty.

Dhakal stated, "The morale of the private sector is at an all-time low. The inability to attract investment despite sufficient liquidity in banks is a serious red flag. If this trend continues, employment and revenue will further decline, leading the country towards failure."

During the protests on Bhadra 23 and 24, the private sector incurred direct physical losses of approximately NPR 36 billion and overall losses of nearly NPR 80 billion. The Federation noted that post-protest insecurity and uncertainty have deterred investors.

FNCCI has proposed a "Private Sector Protection and Promotion Plan" to enhance security and trust in the private sector. This plan includes designating industrial and business establishments as peace zones, establishing a dedicated mechanism for industrial security, and providing expedited, comprehensive services for rebuilding damaged structures.

The Federation has called on political parties to explicitly pledge in their manifestos to uphold constitutionally protected property rights, ensure unhindered business activities, and maintain policy consistency. FNCCI has observed that an economy centered on socialism and the three-pillar policy framework has not yielded the expected levels of employment and investment.

Need for Legal Reforms and Digital Services

FNCCI has urged the revision or abolition of more than a dozen laws, regulations, and procedures that impede entrepreneurship. They have suggested the full digitalization of all processes, from business registration to closure, through the Citizen App, and the removal of the annual business license renewal requirement.

The Federation has placed a strong focus on Agriculture, Tourism, Energy, and Infrastructure. In the agricultural sector, they have emphasized initiatives such as the Organic Hills Program, farmer ID cards, digital subsidy distribution, and the promotion of agricultural exports through the "From Farm to the Gulf" campaign.

For tourism, FNCCI has proposed providing tax incentives and infrastructure support for projects such as hill stations, cable cars, resorts, and medical facilities, as well as positioning Nepal as a top destination for weddings and conferences.

In the energy and infrastructure sectors, the Federation has called for increased tax benefits to attract private investment in hydropower projects, private sector participation in land acquisition and transmission line construction, and clear operational guidelines for Nijgadh International Airport, Gautam Buddha International Airport, and Pokhara International Airport.

Advocating for a Simplified Tax System

FNCCI has suggested streamlining the tax system by introducing a multi-rate VAT system, reducing taxes on productive industries, eliminating double taxation, and enacting a comprehensive law for non-tax revenue to enhance competitiveness and stability. Additionally, they recommended providing up to a 75 percent income tax exemption for companies that reinvest their profits.

The Federation stressed the need for a secure, respected, and motivated private sector to drive employment growth, revenue expansion, and overall prosperity in Nepal. It called on political parties to not only include private-sector-friendly policies in their manifestos but also to follow through with their implementation.

With less than a month and a half left before the House of Representatives election, major political parties are gearing up to unveil new manifestos to attract voters.

The focus of the parties is on announcing their prime ministerial candidates, with the Nepali Congress, Rastriya Swatantra Party, and CPN-UML all naming their contenders for the position.

While political parties have a history of making promises during election campaigns, many of these pledges have gone unfulfilled, leading to skepticism among the public regarding the credibility of their new manifestos.

The economic policies and priorities for the private sector of the Nepali Congress, CPN-UML, CPN (Maoist Centre), Rastriya Swatantra Party, and Rastriya Prajatantra Party are yet to be clearly outlined.

Despite the potential of the private sector to drive employment and inspire the youth, the promises made by the parties in their manifestos are limited to specific sectors that they have highlighted.

In the health sector, the Nepali Congress had pledged to provide free treatment for children under three years of age and citizens above 73 under the slogan “3–73,” as well as to implement universal health insurance for all citizens within five years, ensuring coverage for serious illnesses through insurance.

The party had also committed to establishing health science academies and specialized hospitals in every province, and to offering free, quality sanitary pads to all women.

While private sectors have made significant investments in the education system, contributing greatly to providing education for all, parties did not address how to protect these investments. Instead, they promised free education.

Infrastructure Development

The parties vowed to complete all ongoing national pride projects, ensuring that construction projects would be finished on time by dividing work into three shifts over 24 hours.

They also prioritized the Mechi–Mahakali railway and the expansion of Biratnagar and Nepalgunj airports into regional airports. Additionally, they pledged to generate 10,000 megawatts of electricity within five years.

Employment and Economy

The Nepali Congress committed to creating 1.25 million new jobs within five years and aiming for a minimum economic growth rate of 7 percent. They also aimed to reduce the contribution of remittances to GDP from 23 percent to 10–12 percent within 10 years.

The CPN-UML promised to enroll all employable individuals in the Prime Minister Employment Program and provide at least six months of employment. They also proposed offering temporary employment or relief to those who lost their jobs due to circumstances beyond their control until they find new employment.

The Maoist Centre plans to establish a National Employment Authority to create job opportunities for 2 million youths in five years.

The RSP aims to reduce costs for Nepalis seeking foreign employment and promote entrepreneurship among returnee migrants. The Nepali Congress aims to attract 2 million tourists annually and improve social security.

The CPN-UML pledges to boost tourism, double per capita income, and grow the economy to NPR 100 trillion in five years.

The Maoist Centre promises a State Security Card for citizens below the poverty line, providing free basic services and subsidized goods.

The RSP plans to introduce free "Blue Buses" for women, increase foreign investment, and promote Nepali products. They also aim to boost tourism revenue and offer one-year visas to high-earning remote workers. The party aims to eradicate poverty in Nepal by Bikram Sambat 2110.

During a time of severe economic crisis in the country and with private sectors struggling due to political and legal challenges, political parties are emphasizing the "restoration of democracy and the constitution" over development and prosperity. The newly formed Ujyalo Nepal Party, led by Kulman Ghising, aims to prioritize socio-economic issues, good governance, and the construction of large-scale projects with private sector support.

Former Vice-Chairman of the National Planning Commission and economist Min Bahadur Shrestha notes that political manifestos in Nepal often make lofty promises but lack effective implementation. He explains that parties may include ambitious goals in their manifestos to inspire hope among the public, even though the practicality of achieving these goals is limited.

Despite the content of political party manifestos, the private sector may feel disheartened about the potential for substantial economic reforms in Nepal. Nevertheless, President Dhakal remains dedicated to collaborating with political parties and leaders to tackle their issues and priorities.