A study report has shown that the private sector has contributed 85 percent to the total employment in the country. A study report conducted by the Federation of Nepalese Industry and Commerce and the International Finance Corporation on the contribution of the private sector to the economy has shown this.
According to the report, private sector's contribution to Nepal's Gross Domestic Product (GDP) is about 81 percent and 85 percent of total employment creation is provided by the private sector. Therefore, the report concludes that the role of the private sector is very important for the expansion of Nepal's economy.
Chanda Prasad Dhakal, President of the Federation of Nepalese Industries and Commerce, said that a study report on the contribution of the private sector to the economy was published for the first time in Nepal and it gave a solid basis for why the private sector should be respected. Chairman Dhakal said this during the public program on the private sector's contribution to the economy on Thursday. He said that the report pointed out the need to address private sector-friendly policies and practical issues.
The study has shown that the private sector contributes 81 percent to the economy. This means that if the private sector does not flourish, the economy itself will suffer," he said. "The private sector has not been able to work relatively well for the past one year. The industry, trade and construction sector is negative.' As a result, the expected economic growth rate of 8 percent has been limited to 2 percent. Dhakal also said that the government is finding it difficult to meet current expenses as the revenue has decreased by 16 percent. He also said that since the private sector cannot provide more jobs in such a situation, 600,000 youths are now forced to go abroad for work in 9 months. "There is no longer any doubt that the leading role of the private sector is necessary for sustainable economic development and the starting point of that reform should be this time's budget," he said.
The report mentions that opportunities should be given to the private sector in investment areas with comparative advantage and in new areas. "There is a need for a special program in the production and export of minerals including iron in Nepal," the report said. Gravel, stone and sand are piled up in various rivers. Dhakal said that since a study showed that it is possible to earn about two billion dollars annually from its use, we should promote products of comparative advantage while minimizing the environmental impact.