Kathmandu: President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has said that vehicle sales in Nepal are expected to increase by 40 percent compared to two years ago.
Dhakal remarked that this projected growth signals an improvement in the market. Despite recent years being unfavourable for Nepal’s economy, he noted that since last year, optimism within the private sector has been increasing.
According to him, government policies have played a significant role in revitalizing the private sector. The government has already amended more than 30 laws in line with recommendations from the private sector, Dhakal said, adding that it is now necessary to frame rules and regulations based on these revised acts.
He also pointed out that both the national budget and monetary policy were formulated by incorporating suggestions from the private sector. With banks holding ample investable funds, interest rates at single-digit levels, and laws becoming more private-sector friendly, Dhakal said the overall environment for investment has improved significantly.
On the government’s decision to implement the Euro 6 emission standard for vehicles, Dhakal welcomed it as a positive move but urged the authorities to put it on hold temporarily. He argued that the sudden implementation has created challenges for some automobile businesses. Vehicles already ordered, produced, or awaiting letters of credit (LCs)—which were specifically manufactured for the Nepali market—have now been stranded due to the abrupt enforcement of the new standard.
Dhakal has called on the government to provide a short window of time to allow such vehicles to be imported and cleared before fully enforcing the Euro 6 regulation.
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