Umbrella organizations of the private sector have said that the government’s recent arrests of industrialists and businesspersons have discouraged the business community.

Issuing a joint statement on Friday, the Federation of Nepalese Chambers of Commerce and Industry, Confederation of Nepalese Industries and Nepal Chamber of Commerce said that the move has discouraged the private sector. 

The statement, which comes a day after the arrest of industrialist Shekhar Golchha,  said that the private sector has been discouraged by the arrests of entrepreneurs at a time when people were expecting stability in the country and a better investment environment following the formation of a new government.

The umbrella organizations have warned that the private sector, which contributes 81 percent to the economy and 86 percent to employment, could be pushed into a state turmoil, which will have a serious impact on the economy, employment, revenue, and infrastructure construction.

They urged the government to carry out an investigation before the arrest. 

Despite stating that they would fully cooperate with the investigation and appear before the police whenever called,  entrepreneurs and businessmen have said that the entire private sector is worried and saddened by the arrests on charges of financial crimes. 

They drew the attention of the government that the arrest of entrepreneurs would not only affect individuals, but could have a serious impact on millions of jobs,  supply chains, banking sector, and broader financial system. 

The private sector said that they have welcomed the government’s decision to include the private sector in policy and lawmaking processes .

“The private sector has no objection to the arrest of the people found guilty of wrongdoing. It, however,  reminds the government of the constitutional right to live with dignity and the principle of “innocent until proven guilty” as enshrined in the Constitution of Nepal,” the statement reads.

The private sector has expressed expectations that the economy, which remained stagnant for the past four years, would gain momentum with the support of the government. 

“We once again urge all concerned parties to clearly understand that the country will head towards the path of prosperity only  through private sector investment and the enthusiasm of entrepreneurs. 

The statement was signed by FNCCI President Chandra Prasad Dhakal, Confederation President Birendra Raj Pandey, and Chamber President Kamlesh Kumar Agrawal.