KATHMANDU: Nepal Chamber of Commerce President Kamalesh Kumar Agrawal said the private sector remains frustrated because the national economy has failed to gain momentum.

Addressing the 25th annual general meeting of the Rupandehi Trade Association on Saturday, he stated that the lack of economic activity has weakened the morale of industrialists and business owners, who are currently facing numerous challenges.

Agrawal noted that while the private sector held high expectations for the current government, it has failed to stimulate economic activity. ‘The private sector was very encouraged by the policy programs and the budget introduced by the government.

It has been six months since the government was formed, but it has failed to create a business-friendly environment, and economic activity in the country has not increased. Currently, industrialists and business people are in a wait-and-see mode,’ he said.

He explained that despite a reduction in bank interest rates, frequent changes in government policies and the tax system have prevented businesses from investing confidently. ‘There is nearly Rs 1.5 trillion lying idle in banks. Even though interest rates have dropped to single digits, the private sector is not ready to invest in new projects under the current conditions,’ he added.

Agrawal claimed that the difficulties in the economy are due to government policies. He stated that the government has yet to move away from the restrictive policies of the past. ‘Collaboration between the government and the private sector is essential.

It is necessary to amend many laws related to industrialists and businesses to boost their morale,’ he said. He added that the overall economy, including startups and the industrial sector, will only improve if the country can quickly emerge from the current economic slowdown.