The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged the government to launch a relief package to help the economy recover from the damage caused by the Tarai banda and unofficial blockade of Nepal by India.

The ongoing political unrest in the Tarai region has dealt a severe blow to businesses, and the government should act immediately to save them from going under, the apex body of the private sector said at its 10th executive committee meeting.

The FNCCI said that the economy had sustained losses in the amount of Rs100 billion due to the continuing strike.

“We are saddened by the loss of human lives and physical property due to the

Tarai unrest. The talks being held between the major political parties and the Madhes-based parties are a welcome move. Both the sides should work on giving a logical end to the unrest, and save the country from turning into a failed state,” the FNCCI said in a statement.

Earlier, the FNCCI had asked Nepal Rastra Bank (NRB) to extend the deadline for the first quarter instalment payment to the end of the second quarter, arguing that the strikes in the Tarai had badly affected industries and businesses. During a meeting with NRB Governor Chiranjeevi Nepal on Wednesday, an FNCCI team had requested postponing the repayment of the principal and interest of trust receipt loans, other short-term loans and demand loans until mid-January.

The apex private sector body also asked the central bank to create a provision that banks and financial institutions would not impose penal interest for delaying loan repayment.

The Tarai region has remained closed for the last one and a half months due to the banda organised by various Madhes-based parties and organisations. Almost all the factories located in key industrial corridors from Bara-Parsa to Sunsari-Morang remain shut. The closure of industries, transportation, trade, export-import and educational institutions has caused losses in the billions of rupees, according to the FNCCI.

The prolonged shutdown in the country’s main industrial belt, which has come immediately after the devastating April 25 earthquake, is expected to hit the economy hard.

Likewise, the meeting on Sunday which was chaired by FNCCI President Pashupati Murarka has nominated former FNCCI senior vice-president Bhaskar Raj Rajkarnikar and eminent industrialist Kumud Dugad as special members. It has also decided to issue membership to a number of district-based FNCCI associations in different categories.  

Former FNCCI presidents Ravi Bhakta Shrestha, Chandi Raj Dhakal and Kush Kumar Joshi, among other executive committee members, also attended the conference.