Confederation of Nepalese Industries Suggests Monetary Policy Measures to Nepal Rastra Bank

Kathmandu. The Confederation of Nepalese Industries has given suggestions to Nepal Rastra Bank for the monetary policy of the fiscal year 2083/84. On behalf of the Confederation, Chairman Birendra Raj Pandey handed over the suggestions for the monetary policy to Governor Vishwanath Poudel on Wednesday. 

The Confederation has suggested bringing a monetary policy keeping in mind that the macroeconomic indicators of the external sector are encouraging and strong, but the internal economic activities have been out of rhythm for a long time. 

The Confederation has suggested focusing the upcoming monetary policy on three aspects. Suggestions have been given on increasing economic activities by boosting immediate low market demand, improving monetary policy practices, and moving towards structural reform of the central bank. 

The Confederation has suggested gradually reducing the limit of directed credit on a percentage basis, implementing working capital related guidelines on a sectoral basis, modernizing the interest rate determination system, extending the time limit for classification and blacklisting of collateralized loans, establishing a special loan facility for startups associated with the government's Enterprise Facility, and forming a empowered monetary policy committee within Nepal Rastra Bank. 

Chairman Pandey said that the monetary policy is expected to boost market demand and investor confidence and help in the revival of the economy.

Upon receiving the suggestions from the Confederation, Governor Poudel said that the upcoming monetary policy will mainly focus on ensuring interest rates and financial stability. He mentioned that the private sector is the main driver of the economy and stated that close coordination between the regulatory bodies and the industry sector will be indispensable in the coming days to promote investment and economic activities.

On the occasion, former Chairman of the Confederation Hari Bhakta Sharma, Confederation Governing Council member Shashikant Agarwal, Confederation Bank and Financial Committee Chairman Varun Kumar Todi, among others, were present.