Finance Minister assures payments for construction entrepreneurs soon

KATHMANDU, JUL 18: Deputy Prime Minister and Minister for Finance, Bishnu Prasad Poudel, assured construction entrepreneurs that their complaints regarding due payments from the government would be addressed soon.

In a meeting with office-bearers of the Federation of Contractors' Association of Nepal (FCAN) at his office in Singha Durbar yesterday, Minister Poudel reassured that there would be no room for complaints from contractors regarding their outstanding payments. The newly appointed Minister also pledged to resolve the longstanding electricity fee dispute between industrialists and the Nepal Electricity Authority concerning the 'dedicated line' and 'trunk line' in accordance with prevailing law.

According to him, the Head of the Government has already put forth the government's perspective on the 'dedicated and trunk line dispute,' and thus urged construction entrepreneurs not to panic about this matter. He stated that the government would not create any liability through illegal means and would avoid such efforts if any.

The Finance Minister further stated that the government, as the guardian of the private sector, was always ready to heed the problems and complaints of the private sector and seek solutions to those issues. "The incumbent government will not let the trust and confidence of the private sector be broken," he vowed, urging the visiting delegation to move ahead with high morale and contribute towards nation-building with confidence in receiving protection from the State.

He argued that the biggest challenge for him as the Minister of Finance was to raise the morale of the private sector and the general public, which, he opined, had been ebbing lately. The Finance Minister expressed his concerns over the decreasing demands and exports in recent days, as well as the dip in revenue collection and capital expenditure.

He also articulated the government's readiness for legal, structural, and practical reforms to raise the morale of the private sector and boost the construction sector. Seeking suggestions from construction entrepreneurs regarding support from the government for facilitating policies, the Minister mentioned that the government had adopted the policy of facilitating, supporting, and collaborating with the private sector.

According to him, the government had taken cognizance of the inconveniences facing the private sector regarding the policy and implementation of the laws and assured that the government would consider making laws flexible and easy if there were problems in the legal arrangements.

On a different note, the Finance Minister asserted that meaningful initiatives were being taken to address the problems facing the microfinance and cooperatives sector. He expressed his belief that the monetary policy to be rolled out by the Nepal Rastra Bank in the next fiscal year would address the existing financial sector-related issues.

FNCCI calls on the government to make policy decisions to motivate the private sector. On the occasion, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Chandra Prasad Dhakal spoke on the need for forming a high-level mechanism with the participation of the private sector to address the existing problems seen in the economy. "The morale of all sectors, from the general public to the industrialists and businessmen, is low while the whole economy is in a weak situation at present. Serious initiation is required for a way out of this situation," he said.

The FNCCI president demanded that the industrialists, businessmen, and the private sector should be given a place in the protocol (order of precedence) determined by the government. According to him, the industrialists and businesspersons were not in a position to enthusiastically invest fresh capital. "Investments are not being made despite adequate liquidity and low interest rates. Industrialists and entrepreneurs have not been able to pay the principal amount and the interest on the loans they have taken. New entrepreneurs have not been able to venture into the market," Dhakal said, suggesting the institution of a high-level mechanism with the involvement of the private sector to take initiatives to resolve several of the current problems. He added that such a mechanism should be formed without incurring any financial burden on the State.

The government should make a big policy decision to motivate the private sector, he reiterated. The FNCCI president complained that the increase in illegal imports had resulted in the loss of government revenue on the one hand, and on the other, traders and entrepreneurs facing problems. In the meeting, the FNCCI placed a demand before the Finance Minister, urging the government bodies to facilitate expediting works related to land acquisition for development projects, construction of approach roads, and carrying out Environmental Impact Assessments.

Similarly, it suggested the government clarify the jurisdiction of regulatory bodies, ensure the prompt payment of dues owed to construction entrepreneurs, and resolve the dispute related to the dedicated and trunk line power tariff. The FNCCI also called on the government to be serious about resolving the problems seen in the cooperative and microfinance sectors.

The private sector, likewise, called for establishing a convenient and flexible system that does not upset the system while bringing the monetary policy for the upcoming fiscal year. Among other topics, the FNCCI raised the issue that the implementation of guidelines on current capital loans should be eased and a flexible policy should be adopted for managing the capital fund.