‘A Critical Turning Point’: FNCCI President Issues Urgent Call for Economic Transformation to Halt Youth Exodus

Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), has stated that Nepal is currently at a vital crossroads with a rare opportunity to foster a self-reliant economy through private sector leadership. Speaking at the FNCCI’s 60th Annual General Meeting in Kathmandu, Dhakal noted that the current political stability, characterized by a near two-thirds majority government, offers a unique chance to ensure policy consistency and accelerate development. He specifically highlighted the government's new Private Sector Promotion and Protection Policy as a positive step toward increasing entrepreneur confidence.

Dhakal expressed concern over the significant number of Nepalese youths seeking employment abroad, noting that while 500,000 people enter the labor market each year, approximately 700,000 leave the country for work. He argued that Nepal must focus on generating high-quality domestic jobs, especially since the private sector already accounts for 86 percent of total employment. Comparing Nepal to nations like Vietnam and South Korea, he pointed out that the country's average growth of 4 percent and low foreign direct investment indicate a need to catch up with regional peers. To address these issues, Dhakal called for a new phase of economic reforms focused on governance, technology, and reduced regulation. He also highlighted FNCCI's initiative to mobilize domestic resources through a new Rs. 10 billion investment company, designed to fund large-scale projects locally.