The election of a new Prime Minister has raised the hopes of the private sector that the ongoing political turmoil in the southern part of the country will soon be resolved.

Parliament on Sunday elected KP Sharma Oli as the new Prime Minister of Nepal. He is expected to begin putting together a new government on Monday.

The private sector has been suffering massive losses due to the unrest in the Tarai plains, the country’s industrial heartland, and the unannounced blockade by India.

“We are upbeat over the new government,” said Pashupati Murarka, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). “We are hopeful that the new government will expedite talks with the Tarai-based parties and resolve the issue at the earliest possible.”

The FNCCI is of the view that the government should create a conducive environment to attract investment and help businesses thrive. According to Murarka, the government should put economic development at the centre and accord it top priority.

President of the Nepal Chamber of Commerce (NCC) Rajesh Kaji Shrestha said the formation of a new government had boosted optimism among entrepreneurs. “We have had talks with Tarai-based leaders. They have shown a positive indication. If the new government gives due focus, the ongoing political turmoil will soon come to an end,” Shrestha added.

On Saturday, the three main private sector bodies, the FNCCI, NCC and the Confederation of Nepalese Industries (CNI), had urged the agitating Madhes-based parties to change the format of their protests, stating that the current banda and blockade had caused billions in losses to the private sector.

“Since festivals like Dashain, Tihar and Chhath are around the corner, the Madhes-based parties have shown a positive indication,” Shrestha said.

However, the private sector feels that the environment would have been much better if a national unity government had been formed by reaching a consensus among the major political parties. The next government to be formed by the UML will include the UCPN (Maoist), Rastriya Prajatantra Party - Nepal and the Madhesi Janadhikar Forum - Democratic.

The Nepali Congress (NC), the largest party in Parliament, will be playing the role of the main opposition.

“It would have been great to see a consensus government. However, we are optimistic that the NC, as a responsible political party, will be playing a constructive role,” Murarka said.