KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Shrestha has called for a more positive government approach towards the automobile sector.
Speaking at the NADA Auto Show on Tuesday, Shrestha said the automobile sector imported goods worth around Rs 106 billion last year and contributed around Rs 81-82 billion in government revenue.
He said the sector should not be viewed simply as a consumer goods business. It should be seen as a major source of government revenue and employment.
Shrestha also called for reducing the heavy dependence on imported vehicles and spare parts. He said Nepal should focus on local assembly and contract manufacturing to develop and promote the domestic automobile industry.
He said Nepal’s economy is facing serious challenges due to a slow market, weak demand and declining business confidence.
Shrestha said he had never seen such a difficult situation in his 36 years of business experience. Although the government has announced ambitious targets for economic growth, higher per capita income and job creation through the budget, he said there is a lack of clear strategies, policies and action plans.
“Beyond speeches and announcements, the country needs an overall restructuring to bring the economy back on track,” he said.
Shrestha said the government’s plan to revive closed industries is positive, but it should also ensure that existing and newly operating domestic industries do not suffer.
He also stressed the need to create more jobs and increase real wages in Nepal to slow the growing migration of young people. He said Nepal must make better use of its demographic dividend, which could be at risk of being lost within the next decade.
Shrestha said FNCCI is ready to fully support the government in achieving its target of building a $100 billion economy and creating 1.2 million jobs. He also urged the government to introduce policy reforms based on the concerns of the private sector.
