Business Community Calls for Private Sector–Friendly Reforms at Birat Trade Expo 2025

Private sector leaders in eastern Nepal have accused the government of failing to adopt a private sector–friendly approach.

Naveen Rijal, immediate past president of the Morang Chamber of Commerce and Industry, said the government continues to view the private sector negatively. He was speaking at the Birat Trade Expo 2025, which began in Biratnagar, the capital of Koshi Province, on Wednesday, December 24.

Rijal said the government had faltered at several points in promoting industry and trade. He cited the lack of tax system reform and lower customs duties on finished goods, which he said have hurt industries reliant on imported raw materials. These policy gaps, he added, showed the government’s failure to become private sector–friendly.

Anupam Rathi, president of the Morang Chamber of Commerce and Industry, echoed the concern. He said new investment had not increased despite positive macroeconomic indicators. Declining investor confidence, he added, remained a major challenge.

Reviewing the past five years, Rathi said economic growth had steadily declined since Covid-19. He said the private sector had suffered due to weak governance and policy instability.

Earlier, Finance Minister Rameshore Khanal, who inaugurated the expo, said economic prosperity was possible only by taking entrepreneurs into confidence. He said the economy could not be strengthened by viewing the private sector with suspicion. Khanal added that the government was working with the private sector to revitalise the economy.

The finance minister pledged to make tax administration fully technology-friendly and hassle-free. He also committed to institutionalising federalism. “Real implementation of federalism requires transferring authority from the centre to local levels,” Khanal said. “The government will not retreat from transferring administrative authority.”

Citing Denmark as an example, he said conditions should be created where federal ministers submit memorandums at the local level. Khanal also said the interim government’s main agenda was good governance and corruption control. He claimed recent progress in corruption cases reflected the government’s commitment.

Koshi Province Minister for Tourism, Forests and Environment Sadananda Mandal told the finance minister that increased tourist arrivals benefit the national economy. However, he said federal offices had failed to support provincial plans. “The provincial government planned to increase Indian tourists by allowing entry with stickers on vehicles at border points and avoiding repeated checks elsewhere,” he said. “But the customs office at the border did not provide even a basic room to implement it.”

Organisers expect the expo, being held at Shanti Chowk until January 3, to attract around 200,000 visitors. Business transactions worth about Rs 500 million are projected. The expo is expected to expand national and international markets for products and services from industry, agriculture, tourism, education, health and energy sectors.

They added that the event would serve as a common platform for startups, women and young entrepreneurs to build business links with domestic and foreign investors. With a focus on promoting Koshi Tourism Year 2082, the expo aims to showcase the province’s culture, traditions and tourist destinations.

The venue features three hangars and more than 200 stalls. Exhibits include agricultural and industrial products, art and culture, tourism, education and health services. Products from India, Bangladesh and Pakistan are also on display.

The expo will host thematic sessions and seminars for eight consecutive days on startups, women entrepreneurship, tourism and information technology and AI. Organisers have partnered with institutions such as Swisscontact and Idea Studio to provide participants with knowledge, skills and opportunities.

Promoted by Biratnagar Metropolitan City, the expo is mainly sponsored by Rumpum Noodles and Maruti Cement. Khukuri Rum, Century Masala and Green Tyres are among the other sponsors. Supporting organisations include the Federation of Nepalese Chambers of Commerce and Industry, the Confederation of Nepalese Industries and the Chamber of Industries Morang.