Governor Poudel Taking Calculated Steps
Newly appointed Governor of Nepal Rastra Bank (NRB), Dr. Biswo Nath Poudel, held a meeting on Wednesday at NRB with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), which is the umbrella organisation representing the private sector. Governor Poudel stated that the central bank’s policies, including monetary policy, will be formulated based on policy stability and consultation with stakeholders.
“The private sector is the driver of the economy. Stability is essential to keep the economy dynamic. Decisions must be predictable. I believe that instead of making abrupt decisions in the banking sector, it is better to engage in discussions with stakeholders to maintain policy stability,” he stated. Governor Poudel also remarked that NRB plays a critical role in keeping the economy active.
FNCCI President Chandra Prasad Dhakal congratulated the newly appointed governor and suggested that the central bank introduce programs that promote investment and boost confidence. He emphasised that the NRB should contribute to economic prosperity by fostering an investment-friendly environment.
He further noted that revitalising the rural economy is the key to energising the overall economy and recommended that remittance inflows be made more open and accessible. He pointed out that one of the main reasons for the stagnant market is the current working capital loan guidelines, suggesting they should be made more flexible based on sectors.
Former FNCCI President Shekhar Golchha noted that despite most economic indicators showing positive trends, the overall economy remains sluggish. He emphasised the central bank’s role in reinvigorating the economy. Similarly, Senior Vice President Anjan Shrestha suggested that the liquidity available in banks should be directed toward productive sectors and called for differentiated interest rates for loans to industry and trade.
On the occasion, FNCCI Vice Presidents Hemraj Dhakal and Jyotsna Shrestha, and Treasurer Bharatraj Acharya suggested that the monetary tools adopted by the central bank should aim at generating market demand.
The FNCCI delegation also advised Governor Poudel to immediately implement the government’s budget provision to offer loans at lower interest rates to productive industries compared to other businesses by formulating a working procedure. They also recommended ensuring refinancing options for small and medium enterprises (SMEs) and providing project loans based on project feasibility.
