Despite the prolonged political instability, the Nepali private sector felt more confidence over six months, a business confidence study conducted by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) showed.

The Second Business Confidence Survey Report released by FNCCI -- the apex organization of the Nepali private sector -- placed the Business Confidence Index (BCI) -- which measures the confidence of business people, at 49.5 percent, up from 39.7 percent indicated by an earlier report.

Increased foreign trade, more convenience in securing loan, and declining cost of production are the factors boosting the confidence of business people, the report said.  Making public the report, Hemanta Dawadi, the director general of FNCCI, said business people expressed more optimism this time compared to the situation before the first six months of the current fiscal year. “Business people are not only more confident but more optimistic about the business environment in next six months,” Dawadi said. The report has found that the agriculture sector is most confident among the sectors of economy.