Nepal’s top business leader, Chandra Prasad Dhakal, has warned that the proposed changes to the country’s BAFIA law could harm the economy if passed without proper review.
Speaking at an event in Kathmandu on Tuesday, organized by the Nepali Congress’s financial wing, Dhakal expressed serious concerns about the amendments to the Bank and Financial Institutions Act (BAFIA).
He said if the law is passed in its current form, it could slow down or even damage many areas of economic activity. One big issue, he noted, is the attempt to separate business owners from bankers under the new rules.
Dhakal explained that the draft proposes giving 51% shares to promoters and limiting who can take loans. For example, if someone owns more than 1% of a bank’s shares, they may not be allowed to borrow money from that bank. This, he warned, could shut down many businesses that rely on such financing.
He stressed that the private sector is key to economic development and needs encouragement, not restrictions. Dhakal appreciated recent government moves that support the business community, such as forming a high-level economic commission and prioritizing private sector needs in the national budget.
According to Dhakal, Nepal has great economic potential. He urged people to shift from a negative outlook to a positive one. He pointed out some encouraging signs: record-high remittances, growing foreign currency reserves, and falling interest rates in banks. All of these, he said, make it a good time to invest.
To boost internal investment, Dhakal also revealed that a new company called Nepal Public Limited has been launched under the Federation of Nepalese Chambers of Commerce and Industry. It has a starting fund of 10 billion rupees and aims to invest in various sectors to support the country’s development.
