The Federation of Nepalese Chamber of Commerce and Industry (FNCCI), the apex body Nepali private sector, has recently elected its new leadership. The representatives of FNCCI's district chambers and associate organizations across the country participated in the election. Pawan Prajapati, President of Pokhara Chamber of Commerce and Industry, was in Kathmandu to participate in the FNCCI jamboree. The entrepreneurs of Pokhara, one of Nepal’s major business hubs as well as tourism centers, have been affected by high interest rates and a slowdown in business activities.
Pratik Ghimire of ApEx talked to Prajapati regarding FNCCI’s new leadership and issues surrounding Pokhara’s business sector.
What should be the priority of the new leadership of FNCCI at a time when businesspersons across the country are facing multiple problems?
The new leadership of FNCCI has a lot of challenges ahead of it. Of late, the relationship between businesspersons and banks and financial institutions (BFIs) has soured due to high interest rates and a shortage of investible funds in the financial system. There have also been problems with imports and exports.
Hence, FNCCI should focus on creating a friendly environment between the private sector and the BFIs. Since the private and banking sectors are two sides of a coin, the new leadership should work to get out of the current crisis.
The government is working on the next fiscal year’s federal budget. What should be the focus of the upcoming federal budget?
We expect that the government will incorporate policies in the new budget that would help businesses. The government should create an environment where businesspersons will get loans easily, and that it safeguards local production and promotes exports. It will be better if the government consults with the private sector including FNCCI to make a package plan to reduce the trade imbalance.
As the President of the Pokhara Chamber of Commerce and Industry (PCCI), what are the new initiatives taken by PCCI in recent times?
Our team got elected only seven months ago. We took the leadership of the PCCI during a very challenging time. Yet, we have been working our best to help entrepreneurs. We have been regularly lobbying for a better business environment with the government and authorities concerned. For instance, our team recently met Prime Minister Pushpa Kamal Dahal and gave our suggestions to create a business friendly environment. Also, PCCI has planned to construct a multi-purpose building. It aims to promote the products of the producers of the Gandaki Province under one roof.
Which business sectors were the worst hit due to the high interest rates and liquidity crunch?
Pokhara is mainly known for its tourism industry. And it is the one that has been hard hit by the current economic recession. If the tourism business surges, all the other sectors in Pokhara will benefit. If our business becomes stable, it will help the national economy. Hence, the government should focus on boosting the tourism industry. And there is a narrative that Pokhara only has Fewa Lake and Mt Machhapuchhre. But we must work to establish more tourist attractions and destinations.
What is PCCI doing for tourism entrepreneurs?
PCCI has not waited for the government to act, but we have been working on our own to invite tourists. A team of tourism entrepreneurs from Pokhara is currently in Patna, India to promote Pokhara tourism. Tourists should not be forced to visit Nepal. It won’t help a bit. We should create an environment for them to come to Nepal on their own. However, this is not possible only with the efforts of PCCI. The FNCCI should have the same voice and the new leadership should help us with this.
Entrepreneurs in Pokhara held high hopes from the Pokhara International Airport. However, international airlines are yet to show any interest in the airport. What’s your say about this?
We have a lot of expectations from Pokhara International Airport, and we have requested the Prime Minister to seriously work on bringing international airlines to the airport as soon as possible. I hope the upcoming visit of the Prime Minister to India will give it a breakthrough. It will not only help Pokhara but the entire Gandaki Province. PCCI played a leading role in establishing the international airport. And if the government fails to start international flights from Pokhara, we will lobby to bring international airliners to the airport.
How much time do you think it will take for the economy to come out of the recession?
The Covid-19 pandemic, issues related to BFIs, and the Russia-Ukraine war affected our economy a lot. But the situation is gradually getting normalized, yet there is a long way to go. The Nepal Bankers' Association has also said that they will reduce the interest rate to single digits. If everything goes well, I guess the situation will be normal in a couple of months. The finance minister has said the same. We are ready to do everything at our disposal to revive the ailing economy.
