Private sector welcomes rise in capital expenditures

Kathmandu: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Anjan Shrestha, has expressed his hope that a rise in capital expenditure will help revitalise the private sector.

Describing the government’s decision to increase the size of capital expenditure in the budget speech for the fiscal year 2083-84 BS (2025-26) as a positive step, the FNCCI President was of the view that even a modest rise would contribute to making the private sector more dynamic and, in turn, strengthen the overall economy.

Speaking at the 19th AGM of Nepal Land and Housing Developers’ Federation here on Saturday, he welcomed the announcements to increase expenditure in the infrastructure sector, reduce income tax, and focus on IT. He underlined the need to end the situation forcing a large number of Nepalis to seek foreign employment and to import up to 70 percent of consumer goods.

“It is indeed encouraging that the budget allows foreign citizens to purchase houses in Nepal on a lease, with the vision of developing well-planned and systematic cities”. At the programme, Shrestha also reiterated that the FNCCI remains committed to addressing the concerns of the real estate sector.

Federation Chair Bishnu Prasad Ghimire said the budget’s emphasis on integrated urban development is positive.

Confederation of Nepalese Industries (CNI) President Birendra Raj Pandey urged the government to introduce more measures for making the economy more vibrant, while senior vice Chair of Nepal Chamber of Commerce, Deepak Malhotra, said the private sector is hopeful of the incumbent government, which has provided stability after a prolonged period of uncertainty.

“The announcement to allocate around Rs 400 billion budget for physical infrastructure development is welcome,” he said.

RSS