Kathmandu, June 12: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal has addressed the 112th International Labour
Conference in Geneva, Switzerland, on Wednesday.
He argued that Nepal’s improved labour relations, recent economic reforms, and its strategic location between India and China have significantly increased investment opportunities in the country.
Dhakal, representing employers at the conference, pointed to the growing cooperation between employers and employees regarding worker social security. He stressed the importance of industrial expansion to solidify these positive developments.
To further promote social security, gender equality and opportunities for sustainable income generation, Dhakal urged employers attending the conference to consider investing in Nepal. He highlighted the recently signed 10,000 MW power purchase agreement with India and ongoing discussions with Bangladesh, emphasising the assured market for Nepal’s hydropower production.
Dhakal also identified potential for tourism infrastructure development in Nepal’s hill stations, citing the growing purchasing power of consumers in large, emerging economies like India and China.
He went on to mention other beneficial sectors for investment, including information technology and agro-based industries. Dhakal informed the conference about the government’s efforts to facilitate investment. These include drafting bilateral trade agreements, reforming laws to simplify investment procedures, and implementing a policy to eliminate double taxation.
President Dhakal also held meetings with senior officials from the International Labour Organisation (ILO) and the International Organisation of Employers (IOE) on the sidelines of the conference.
Full text of the speech
Respected Director General,
Session Chair,
Representatives from government and non-governmental organizations,
Friends from private sector organisations,
Distinguished delegates, good morning.
It is an honor to address you all at this significant gathering.
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is the largest private sector umbrella organisation in Nepal, representing around 600,000 businesses. We are also the only Employers’ Organization in Nepal, placing significant responsibility on us to lead by example.
The Director General’s report emphasizes advancing social justice and decent work for employees. FNCCI has been a champion in both areas.
The private sector of Nepal diligently follows all ILO Regulations and Conventions that our government has signed. Moreover, we have independently undertaken numerous initiatives to uphold employee dignity.
Dignity, in our view, goes beyond proper conduct. It involves enhancing our employees’ capacities for personal and professional development, providing them with better opportunities.
Nepali businesses enjoy a strong employer-employee relationship, and we have not faced significant labor issues in recent years.
Social justice entails equal economic, political, and social opportunities, and rights for everyone. We are committed to inclusivity and gender equality.
This platform allows me to highlight investment opportunities in Nepal and how they can enhance social justice through rapid economic growth.
Nepal began its liberalization process in 1990 and is now implementing new-generation economic reforms. FNCCI has been at the forefront of this push, including the formation of a commission announced in the budget for the next fiscal year.
As a prelude to the reform agenda, the government has amended eight laws related to investment to facilitate FDI.
The Cabinet has approved the Bilateral Investment Agreement Framework, and we are ready to sign agreements with interested countries. The Budget also promises to sign Double Taxation Avoidance Agreements (DTAA) with potential countries.
Nepal, situated between India and China, offers duty-free market access to India, which will continue even after our graduation from the Least Developed Country category. This facility will be available in the EU market until 2029, and we are negotiating similar access with China and other markets. This positioning allows for production in Nepal with export potential worldwide.
Nepal holds immense potential in hydropower production, with huge markets in India and Bangladesh. We have an agreement with India to buy 10,000 Mega Watts of electricity and are in the process of signing an agreement with Bangladesh.
Tourism is another vital sector. Our beautiful hill stations and Himalayas are popular destinations, and the multiplier effect in tourism is substantial, providing livelihood opportunities for the rural population.
Additionally, our youth population is a valuable asset for investors, especially in the booming ICT sector, which offers decent work opportunities for youth on a large scale.
Therefore, I emphasize the need for investments. It will help fulfill the agenda of social justice by creating decent employment opportunities.
Lastly, I thank the ILO for inviting me to this event.
I assure everyone that the private sector of Nepal will continue to be a trusted partner of the ILO.
Let us join hands to create a more sustainable world.
Thank you.
