KATHMANDU: Prime Minister Balendra Shah has pledged to strengthen cooperation with the private sector to address economic challenges and create a more conducive environment for investment and business expansion.

During a meeting with entrepreneurs and business leaders at Singha Durbar on Friday, Prime Minister Shah sought suggestions on ways to improve the business environment and said the government was committed to facilitating investment and supporting the expansion of industries and businesses.

Rashtriya Swatantra Party lawmaker Bidushi Rana, who attended the discussion, said Prime Minister Shah sought detailed information about the problems faced by entrepreneurs in operating industries and businesses.

According to Rana, Shah said domestic entrepreneurs should be given the first priority for investment in Nepal, followed by non-resident Nepalis, while foreign investors would be accorded the third priority.

Business leaders said Nepali entrepreneurs have the capacity to undertake large-scale infrastructure projects and urged the government to introduce necessary policy and legal reforms to facilitate such investments.

Rana said business leaders stressed the need to maintain investor confidence and morale, noting that the private sector contributes around 80 percent to the country’s economy.

They also expressed concern over the practice of arresting or detaining entrepreneurs immediately after allegations are levelled against them, saying such actions have negatively affected the morale of the business community.