Kathmandu: Federal parliament lawmakers and economic experts are advocating for a monetary policy that ensures financial discipline while fostering a robust economy. The focus of the incoming monetary policy should be on creating an environment conducive to investment promotion.
According to National News Agency Nepal, these views were expressed during a meeting of the Financial Committee under the House of Representatives, which was focused on the forthcoming monetary policy of the Nepal Rastra Bank. Suggestions during the meeting included increasing loans for production and employment creation.
Dr. Min Bahadur Shrestha, former Vice Chairman of the National Planning Commission, emphasized the need for an easy flow of project loans, excluding real estate collateral. He recommended reconsidering the current policy of allocating 65 percent of total loans to real estate collateral.
Participants highlighted that the banking sector’s resources are a public asset, with only Rs 404 billion of the Rs 700 billion reserve being utilized by investors. Expert Nar Bahadur Thapa noted the lack of expected investment despite maximum liquidity and low loan rates, recommending increased investment in scientific agriculture.
Former finance minister Barsha Man Pun emphasized the need for a monetary policy that ensures disciplined fiscal behavior while fostering a vibrant economy. He advocated for the promotion of small and medium-scale industries.
Former finance minister Dr. Prakash Sharan Mahat suggested that the monetary policy should correct past mistakes and set a proper action plan, with a focus on adopting new technology in agriculture.
Committee member and economist Dr. Swarnim Wagle observed that the country is trapped in a cycle of political interference affecting economic structures and processes. Lawmaker and businessperson Binod Chaudhary urged the government to create an atmosphere conducive to result-oriented investment, stressing the need to encourage investors.