Private Sector Welcomes Government’s Reform Push

Nepal’s private sector has welcomed the government’s recent flurry of economic reforms, particularly the immediate implementation of the Private Sector Protection and Promotion (PSPP) strategy, describing the moves as a significant boost to investor confidence and a long-awaited step toward policy stability.

Major business bodies—including the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the Confederation of Nepalese Industries (CNI), and the Independent Power Producers’ Association (IPPAN)—have issued statements endorsing the government’s actions, which range from legal reforms and institutional restructuring to ambitious targets in the energy sector.

FNCCI Welcomes Government’s Decision To Implement PSPP

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has welcomed the government’s decision to immediately execute the Private Sector Protection and Promotion (PSPP) strategy, stating that the move has encouraged the country’s private sector.

FNCCI President Chandra Prasad Dhakal, in a press statement, expressed gratitude to the government for addressing the Federation’s long-standing demand. The Cabinet decided to implement the strategy during its meeting on Friday, March 27, and the PSPP programme was subsequently included in the 100-point governance reform agenda announced on Saturday, March 28.

The FNCCI had initially called for a strategy to protect private and public businesses following attacks during past movements, including the Gen Z movement in September 2025.

“This has affirmed the government’s commitment to ensuring the protection of private sector businesses, individuals and investment, as well as their necessary promotion,” Dhakal said. “We expect this will boost the morale of the private sector and assist in promoting investment.”

The 60th point of the government’s 100-point programme includes the PSPP. Additionally, newly appointed Finance Minister Dr Swarnim Wagle initiated the process to annul 15 laws, aligning with policy-level reforms requested by the FNCCI. The Federation had previously lobbied for the formation of a high-level economic reform commission and had urged for legislative amendments through the National Economic Transformation-2030 framework.

“PSPP would work as a mechanism for the implementation of the commission’s recommendations,” Dhakal added, noting that the FNCCI would collaborate with the government on the strategy.

The FNCCI also welcomed the government’s decision to create an integrated structure for bodies such as the Investment Board and the Department of Industry, stating that it would help provide smoother services to investors.

CNI Appreciates Govt Move Towards Economic Policy Reforms

The Confederation of Nepalese Industries (CNI) has welcomed the government’s push to scrap outdated and irrelevant laws, viewing it as a decisive step toward policy reforms in the economy.

Issuing a press release, the CNI stated that the current government has prioritised long-standing demands of the private sector. The body expressed satisfaction with the government’s positive stance on legal and institutional reforms, as well as its focus on good governance and corruption control.

The CNI specifically welcomed the decision to annul the Black Market and Certain Social Crimes and Punishment Act, the Compensation Act, the Foreign Investment Restriction Act, and the Nepal Agency Act. It also praised the move to scrap the Revenue Investigation Department as a meaningful reform.

Additionally, the CNI noted that digitalising the public procurement system, encouraging competitiveness, and giving special attention to private sector security were significant milestones.

The organisation suggested that the Prime Minister-led Industry-Commerce Dialogue Council be activated to ensure continued dialogue with the private sector. It also welcomed the government’s initiative to fix minimum support prices for key food crops and consolidate funds of a similar nature for investment in lucrative projects.

IPPAN Welcomes Govt Action Plan On Energy Sector

The Independent Power Producers’ Association (IPPAN) has welcomed the government’s action plan on energy development, expressing belief that it will spur growth in the sector.

In a press statement, IPPAN Chairman Ganesh Karki said the 100-point reform plan, which positions the energy sector as a foundation for economic transformation, has excited private sector investors, particularly given the government’s strong two-thirds majority.

The government, led by Prime Minister Balendra Shah, has set a target of producing 30,000 MW of electricity within ten years.

Karki noted that IPPAN viewed positively the government’s commitment to finalise pending power purchase agreements (PPAs) within a maximum of 180 days. “With this, those applied for PPA would be heard soon and projects intensified,” he said.

Currently, over 570 private power companies are affiliated with IPPAN. According to Karki, the country’s total power production capacity has exceeded 4,000 MW, with the private sector accounting for over 350 MW. Investors are awaiting PPAs for 13,000 MW, while projects with a combined capacity of 5,700 MW are already underway.

The private sector has invested nearly Rs 1,310 billion in energy till date, with plans to invest an additional Rs 3,000 billion over the next decade. IPPAN has expressed readiness to collaborate with the government for the sustainable development of the energy sector and has called for continued coordination with the Ministry of Energy to ensure effective implementation of the reform plan. – With inputs from RSS