Efforts for economic reform positive but insufficient to meet youth aspirations: FNCCI President Dhakal

KATHMANDU: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stated that while recent government initiatives to reform the economy are positive, they are not sufficient to meet the aspirations of the country’s youth.

Speaking at the 59th Annual General Meeting of FNCCI and on the occasion of Industry and Commerce Day, President Dhakal emphasized the need for creating dignified and well-paying employment opportunities within the country.

He noted that despite progress, Nepal still lacks the necessary capacity to absorb the growing number of youth entering the labor market each year.

“I consider myself an entrepreneur who seeks opportunity even in adversity. I want to spread hope, not despair,” said Dhakal. “The situation is improving, but the current pace of reform is not enough to fulfill the hopes of our youth. Until we create dignified and high-paying jobs within the country, we cannot transform despair into hope.”

Dhakal pointed out that the government currently provides employment to around 500,000 people, while the private sector accounts for 86% of total employment.

However, with nearly half a million young people entering the labor market annually, even the private sector lacks the capacity to absorb them all.

“This is why our youth seek employment in economies that can offer jobs. Not long ago, these economies were on par with Nepal,” he said, drawing a comparison between Nepal and South Korea. “In the 1960s, Nepal’s per capita income was around $50, while South Korea’s was about $100. Today, South Korea’s per capita income stands at nearly $40,000, while Nepal’s is around $1,400. Although Nepal’s income has increased 28 times, South Korea’s has surged 400-fold. The purchasing power gap remains enormous.”

Dhakal stressed the need to allow the private sector to function without disruption and reiterated that economic prosperity means creating equal opportunities for all.

“The current government’s agenda of ‘Prosperous Nepal, Happy Nepali’ is commendable, but prosperity is only possible when everyone has access to opportunities,” he added.

He highlighted the necessity of investments in capital, knowledge, wisdom, and skills to drive economic transformation. “Of these, capital must come first. Investment leads to production, which in turn demands labor and skills. The two main sources of investment are the government and the private sector,” said Dhakal.

“The government primarily raises funds through revenue collection, which comes from entrepreneurs, businesses, and the general public. Since most employment is generated by the private sector, the income of the people is directly linked to it.”

Dhakal acknowledged the current economic challenges but remained hopeful about future improvements.

He called for a unified political consensus on economic reform, development, and prosperity, and urged political leadership to avoid actions that negatively affect entrepreneurship and livelihoods.

“The economic development and prosperity of Nepal must now be led by the private sector,” he concluded.