Prime Minister Balendra Shah has initiated formal consultations with Nepal’s private sector to stimulate economic growth and restore business confidence following the completion of his administration’s first 100 days. The first comprehensive dialogue between the government and private industry representatives took place on July 7 at the Office of the Prime Minister and Council of Ministers in Kathmandu.
During the meeting, Prime Minister Shah emphasized the importance of the private sector as a key partner in driving economic development, job creation, and increased production. He reiterated the government's commitment to addressing practical challenges faced by businesses by prioritizing necessary policy, legal, and administrative reforms to foster a more investment-friendly environment.
Attended by leaders from major private sector organizations—including Anjan Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI); Kamalesh Kumar Agrawal, president of the Nepal Chamber of Commerce; and Rajesh Kumar Agrawal, former president of the Confederation of Nepalese Industries—the discussion focused on revitalizing industrial activities, simplifying business operations, improving the investment climate, and promoting employment generation.
Representatives raised concerns about the current economic slowdown, declining investment, policy instability, and the adverse effects of repeated investigations and legal actions involving some business figures, which they say have dampened investor confidence. In response, Prime Minister Shah clarified that governmental investigations targeted individuals based on credible allegations, not the private sector broadly, and reassured business leaders that legitimate enterprise and investment remain central to the government’s economic agenda.
Private sector leaders proposed the introduction of legal provisions such as anticipatory bail for economic and financial crime cases, allowing businesspersons to continue their operations during investigations unless proven guilty. The prime minister expressed openness to such measures, while maintaining a firm stance that those found guilty of wrongdoing would face appropriate legal consequences.
The meeting also addressed issues including shrinking credit availability, excess liquidity in banks, underutilized business capacity, and the sustained decline in the stock market. Business representatives urged the government to strengthen the legal framework, combat illegal trade, improve public-private partnerships in industrial estate development, rationalize taxes, and enhance coordination across all levels of government to promote economic activity.
Prime Minister Shah welcomed concrete proposals and encouraged continued dialogue, with plans to establish an informal coordination committee comprising government officials and private sector representatives to facilitate regular communication and problem-solving. This committee is expected to meet monthly to discuss business concerns and update the prime minister on progress.
Following this initial discussion, the government has scheduled further consultations with industries such as construction, tourism, information technology, and manufacturing. Officials described these engagements as part of a broader effort to accelerate stalled development projects and review economic recovery plans.
The prime minister’s office reaffirmed its intent to sustain open channels with various stakeholders, including development partners, professional organizations, and civil society groups, reflecting a shift toward a more inclusive approach in governance and economic policymaking.
Overall, the meeting marked a significant step in bridging the gap between government and the private sector, aiming to boost business confidence and create a conducive environment for economic growth in Nepal.