KATHMANDU, May 19: Nepal’s private sector has been contributing around 81.55 percent to the Nepali economy, shows a study report unveiled jointly by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and International Finance Corporation (IFC).
The FNCCI and the IFC through their three-month long study have found the role of the private enterprises much more extensive in the overall economic activities. The survey was based on 18 various sectors of the Nepali economy.
According to the survey report, the contribution of the private sector stands at an average of Rs 80 percent over the past one decade. This contribution was the highest - 86.67 percent - in 2012/13.
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The report has pointed out that the share of public enterprises has been declining due to the low spending capacity of the government and the depleting quality of public services.
Similarly, the private sector is found to be providing employment to 5.5 million people. Around 76.9 percent of the country’s total investment comes from the private sector.
The report shows that the private sector's role in the country’s GDP has surged mainly in the past one decade. It contributes around 97.6 percent of the total agricultural production, 99.61 percent in mines, 65.88 percent in electricity and gas and 84.4 percent in construction.
Similarly, the private sector holds 93.19 percent of the wholesale and retail businesses, 97.18 percent of transport and storage, 58.63 percent of information technology, 99.93 percent of realty business, 71.04 percent of the financial sector and a cent percent of the hotels and restaurants and outsourcing businesses in the country.
The survey report shows that more than 87 percent of private businesses remained shut during the lockdown triggered by the COVID-19 pandemic. While 79 percent of the private businesses were in loss during the period, around 50 percent have gone into profits now.
In the past four decades, the number of private firms increased 30 fold, according to the survey report. In 1983, there were 28,660 private firms operating across the country, while the number increased to 923,356 units as of 2018.
