The Ministry of Federal Affairs and Local Development, and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), the largest private sector umbrella body, signed a memorandum of understanding (MoU) on Friday to enhance partnership between elected local representatives and private sector representatives at the local level.

The agreement was signed by Joint Secretary Rudra Singh Tamang of the Local Development Ministry and FNCCI President Bhawani Rana.

“The signing of the MoU at the central level is not aimed at dictating local units, but facilitating public private partnerships at the local level,” Local Development Secretary Dinesh Thapaliya said after the signing of the MoU. As per the MoU, local representatives as well as the FNCCI would make joint efforts to ensure participation of representatives of local chambers while executing various economic activities at the local level.

“Joint effort will be made to ensure participation of representatives of district and municipal chambers of the FNCCI during the process of preparing annual plans and budget. Also, efforts will be made to include representatives of district and municipal chambers of the FNCCI in revenue advisory committee and other committees and sub-committees formed by local bodies,” the MoU states.

The two parties also agreed to ensure unrestricted movement of industrial raw materials and finished goods through effective coordination between local bodies and concerned district or municipal chambers.

The private sector is apprehensive about unrestricted movement of goods once local bodies start levying various taxes and fees.

As per the MoU, two sides have also agreed to enhance coordination between local units and local chambers to promote industrial development and enhance labour relations.

The local bodies and local chambers have also agreed to promote public private partnerships at the local level, enhance coordination for development of entrepreneurs and promotion of entrepreneurship, and build capacity of cottage and small industries.

The FNCCI and its local chambers have also agreed to play a facilitator’s role in expanding the presence and banks and financial institutions at local levels to ensure social security allowances are distributed through banking channel.

FNCCI President Bhawani Rana said that the apex private sector body wanted to work with the government to address many issues including tax related concerns at the local level.