Politics As Main Business Challenge

--By Upashana Neupane

Political instability has posed as the major critical challenge for Nepali economy, according to the Second Business Confidence Survey report released by Federation of Nepalese Chambers of Commerce and Industry (FNCCI). 

The survey has also pointed out energy crisis and poor governance as the second and third critical challenges. Similarly, the survey stated that the corruption and frequent strikes are also hitting the economy hard. 

There is a silver lining  around this cloud too. Despite the challenge factors, the survey has revealed that the Nepali private sector felt more confident over the last six months. The survey measured the confidence  of business people to have increased by nearly 10 points to 49.5, up from 39.7 six months earlier. 

Increased foreign trade, more convenience in securing  loan and declining cost of production are the factors boosting the confidence of business people, the report said.

The survey has showed that both confidence about  the present (CSI) and optimism about the future (EI) have increased among the business community. 

The survey has found that the Business  Confidence Index (BCI) in the agricultural sector is the highest among the sectors of economy. However, the BCI of manufacturing is the lowest.

The report, which incorporated responses from 420 business people from all districts, identified ten factors, including weak governance and energy crisis, as having affected business confidence in the country.

FNCCI had conducted the survey during March-May period and collected a total of 420 responses from all over the country covering all sizes of enterprises of agriculture, manufacturing and service sector.