Enhancing morale of private sector

The private sector is a part of the economy that is run by individuals and companies for profit and is not controlled by the state. The role of the private sector in Nepal is about more than 80 percent. It includes all privately owned, for-profit businesses. The private sector occupies a large part of the economy in a free market, capitalist society. Private-sector businesses can also collaborate with government agencies in arrangements called public-private partnerships.

A private sector organization is created by forming a new enterprise or by privatizing a public sector organization. A large private sector corporation may be privately or publicly traded.

Private sector businesses drive down the prices of goods and services as they compete for consumers' money. In theory, customers don't want to pay more for something when they can buy the same item elsewhere for less.

The Nepali private sector has demonstrated resilience and adaptability, especially during challenging times. Entrepreneurs in Nepal are motivated and willing to explore new opportunities. The tourism industry, including "eco-tourism," is making a huge contribution to Nepal's economy. The country is rich in natural resources, which can be used for economic growth. Inadequate infrastructure, including transport and energy, hampers business operations. Burdensome bureaucratic procedures and regulatory hurdles affect the ease of doing business. Nepal's landlocked status limits direct access to international markets. Rising interest rates, high taxes, and expensive business operations pose challenges.

However, attracting Foreign Direct Investment (FDI) can overcome existing challenges and boost economic growth. Nepal has significant hydropower potential, which can boost energy exports.

Using trade agreements with neighboring countries can increase market access. By developing specific tourism sectors such as adventure tourism and cultural tourism, we can expand the tourism market.

Frequent political changes and instability affect investor confidence. Nepal's location between India and China can create geopolitical tensions. The private sector is facing challenges related to skilled manpower. The risk of earthquakes and other natural disasters affects business continuity.

In short, the Nepali private sector has strengths and opportunities to contribute to sustainable development while facing challenges. Addressing vulnerabilities and mitigating threats will be critical to its long-term success.

Even from the point of view of Nepal's own measuring devices, one in every five people is poor. The Sustainable Development Goals (SDG), reflected in international development, have set specific goals to eliminate poverty.

In this sense, if there is an increase in the income of the poor people and if they can get better access to health and education services, then the SDG will be considered to have been achieved.

For the development of the private sector, the economic agenda should be included in the constitution. Investment in hydropower should come from the private sector and the government should work to facilitate that process. Hydropower is a commercial project and should not be a government project. It should be a private-sector project. In countries where the rate of economic growth is fast, people get freedom from poverty. At the same time, the private sector has been giving the opinion from time to time that the first thing to do to improve the economy is to boost the morale of the private sector. The confidence of the common people has decreased and the morale of the businessmen has been lost. This problem has arisen because both the government and the private sector are unable to increase investment. It is unfortunate that despite the increase in remittances and tourist arrivals, the main reason for not being able to create the expected demand in the market is the loss of confidence of businessmen and the general public. The private sector thinks that funds have not been able to flow from financial institutions due to the government's capital expenditure not increasing, high-interest rates, current capital loan guidelines and banks' capital fund regulations. If the private sector also tries to establish itself as the leader of the economy, it is necessary to immediately change the existing character of criticizing the government and getting immunity from all its faults. A major share and blame for the development of the import-oriented character that has emerged in the economy goes to the private sector. There was never any attempt to raise economic issues from a sustainable, long-term and broader perspective. The voice of the private sector has also become a cheap speech.

The serious questions and concerns of the private sector were not taken seriously because they stood up and put their demands in the style of political propaganda. In Nepal, as in most independent economies, the private sector accounts for a large share of the economy, compared to countries with greater state control over their economies, which have a larger public sector. For example, the United States has a strong private sector because of its free economy, while China, where the state controls many of its corporations, has a large public sector. It is said that the private sector works only for personal gain. As a result, the private sector could not take the natural pace. Some do not fulfil any of the responsibilities that should be fulfilled by sitting in their place, but take advantage of the many weaknesses of the government and put all the blame on the government and keep themselves as an oven over the water.

The private sector and other stakeholders should always focus not only on criticizing the shortcomings of the government but also on promoting the use of indigenous products and internal employment that can be done at the local level. Development is not only a function of the public sector as thought in the early stages of development. Nor is development as traditionally thought possible. For the development of any country, the potential and capacity of the characters of different sectors should be used. This is the solid foundation of sustainable and overall development. The private sector is the sector outside the government that produces and distributes goods and services to make a profit in the field of competence. The private sector is also called the market sector. As the main mechanisms of the market sector are private entrepreneurs, it is also considered a synonym of the market. The private sector considers the consumer as God and is active in the production and distribution of goods and services according to his wishes. The importance of the private sector in the economy has increased as the public sector bodies are less sensitive, burdensome and less responsive to the customers. It responds immediately to the needs of its customers and operates based on market signals. The private sector has resource allocation skills and based on that, it has the potential to become a strategic development partner. Judging from the mentioned basis, it seems that other than the major tasks that the government must not abandon (policy and law, security, foreign relations, monetary and financial policy and administration of justice) and other tasks that the private sector does not want to or cannot do, it seems that they are trying to do it through the market process. The heart of any country's economic success is the private sector. Sustainable development is also possible due to private investment and an increase in productivity. In the context of Nepal, after the 90s, even though Nepal has moved towards trade liberalization and globalization, we have not been able to achieve any concrete achievements in the country's economic development, economic growth rate or poverty alleviation and inclusion. Some may raise questions about the propriety of an open and marketoriented economic system in Nepal, but such issues have now become secondary. We should not be confused by the liberalization of Nepaliness. We cannot deviate from the marketoriented economy. Therefore, rather than returning to the old market system, today's debate should be limited to identifying the existing mistakes and limiting the activities, order and speed of the reforms. Therefore, the process of trade liberalization should continue continuously. In a country with a small economy like Nepal, there is no doubt that there will be a majority of small businesses, especially in the private sector. Although foreign investment is necessary and mandatory in such a country, domestic capital is mobilized to the maximum extent in industrial business. In addition, small, medium and small industries are run by women to meet local needs only. In this way, small and medium entrepreneurs, including unorganized and procedurally registered entrepreneurs, seem to be the main and important land in terms of entrepreneurship in the country. It has been found that the private sector's contribution to Nepal's economy is 81 percent. A study report jointly prepared by the International Finance Corporation (IFC) and the Nepal Chamber of Commerce and Industry has shown that the contribution of the private sector to the economy is 81.55 percent. It was estimated that the contribution of the private sector in Nepal was above 80 percent. However, no formal studies have been conducted so far. According to the report, the contribution of the private sector to the economy was estimated at 86.67 percent in 2012/13. However, some time ago, it was shown that it was 81.5 percent.

In most of the countries of the world, private sector establishments provide the most employment. According to the report, 80 percent of the jobs worldwide are created by the private sector. In more developing countries, the private sector contributes about 90 percent to job creation. The report mentions that 85 percent of jobs in Nepal are created through the private sector. "The private sector has created the highest number of jobs, it has been seen that the contribution of the private sector to the total employment in Nepal is 85.6 percent," the report states.

It is said that the private sector has provided 5.5 million jobs by the year 2021/22. If the private sector is in trouble, the economy will be in trouble. In less developed countries, the cost of regulation is three times more than in developed countries. Reforms in competition law, infrastructure development, strengthening international trade, reform of public institutions, and improvement in business capacity, especially the financial market should be for the work of poor people, the necessary legal and regulatory system for the development of the financial sector should be reformed, risk reduction to encourage private sector activities, capacity increasing growth and external access, encouraging innovation in the financial sector, bringing the beneficial effects of remittances to the poor, and the main issues of microfinance seem to have to be developed.

Due to the vagueness of the law, it is not possible to quickly adapt to the market conditions. More than this, the government agencies act more as regulators than as facilitators.

Also, the conflict of authority between the ministries and government agencies has hurt the effectiveness of the government's promotional activities.