Prime Minister Initiates Formal Dialogue with Private Sector, Shows Concern for Economy

24 Ashar, Kathmandu – While ministers have been instructed not to meet with industrialists and entrepreneurs, Prime Minister Balendra Shah has begun inviting representatives of the private sector for formal discussions. Expressing deep concern about the economy, Prime Minister Shah encouraged business leaders to freely share their views. During the September 8-9 protests, attacks were also directed at the private sector. Following the vandalism and arson that damaged privately invested businesses, entrepreneurs expressed strong apprehension.

In the election held in Falgun 2082 (February/March 2026), the Rastriya Swatantra Party (Raswapa) secured a majority and formed the government. After forming the government, unfounded actions against industrialists reduced transparency and made the private sector even more wary. Due to the government’s approach that leaned more towards pressure and crackdowns rather than dialogue, business confidence had weakened. Business leaders were uncertain about how the private sector would be treated, which hindered clear decisions on increasing or decreasing investment. However, after more than three months since the government formation, the Prime Minister met privately with umbrella organizations representing the private sector in his office on Wednesday, which has generated a positive outlook within the private sector.

Previously, cabinet members were instructed to block meetings with industrialists and entrepreneurs, but the Prime Minister personally engaged with the private sector representatives, which businesspeople found encouraging. The government has set a 7 percent economic growth target for the upcoming fiscal year, making collaboration with the private sector absolutely essential. Recognizing this, the Prime Minister has, albeit belatedly, sought constructive cooperation with private enterprises. With the private sector contributing over 80 percent to the economy, the Prime Minister understands that maintaining distance from industrialists and entrepreneurs will not be a viable approach.

“The government has realized that economic improvement is impossible without trusting the private sector,” said one business leader. “The conversation with the Prime Minister has created a positive wave within the private sector.” The Prime Minister also assured entrepreneurs that there is no reason for fear regarding the clampdowns on businesspeople that had taken place following government formation. As government circulars prohibiting meetings with traders were still being issued, the Prime Minister’s direct engagement with the private sector has been seen by industrialists as an icebreaker. Ghanshyam Ojha, Director General of the Nepal Industrial Confederation, remarked that the government is maintaining a positive attitude toward the private sector.

“The Prime Minister requested the business community to understand that the government views the private sector positively,” Ojha said. “The government is clear that the private sector is a key partner in nation-building. Currently, unnecessary arrests or detentions of businesspeople will not occur, and the private sector will be treated positively — there is no need to fear.” The Prime Minister’s Office stated that the discussions aimed to strengthen and streamline the country’s economic activities, facilitate industrial and business operations, and create an investment-friendly environment. The talks focused on removing major policy and procedural barriers to boost business confidence, increase employment, and promote production growth. Prime Minister Shah emphasized the government’s recognition of the private sector as a critical partner in the nation’s economic development, investment expansion, job creation, and productivity improvement, and expressed the government’s readiness to resolve practical issues faced by entrepreneurs. He also committed to prioritizing necessary policy, legal, and administrative reforms to foster an industrial and private sector–friendly environment.