Kathmandu, May 22, 2025 - In a significant step toward fostering economic stability and collaboration, Nepal Rastra Bank’s newly appointed Governor, Dr. Bishwanath Paudel, emphasized the importance of policy stability and stakeholder engagement during his interaction with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Wednesday.
Governor Paudel reiterated the central bank's commitment to formulating predictable and stable policies. Highlighting the pivotal role of the private sector as the driver of Nepal’s economy, he stated, “Economic dynamism requires stability. Decisions made by the central bank must be predictable. Instead of abrupt measures, engaging with stakeholders and moving forward together ensures policy stability.” He underscored the central bank’s critical role in revitalizing the national economy.
FNCCI Advocates for Investment-Friendly Policies
Congratulating the Governor on his appointment, FNCCI President Chandra Prasad Dhakal called for measures to create an investment-friendly environment. "Despite lower loan interest rates this fiscal year, credit expansion remains stagnant. To boost the morale of the private sector, both monetary and non-monetary measures must be adopted," he said. Dhakal highlighted policy instability as a major deterrent to investment and emphasized the need for consistent policies over the next decade to facilitate sustainable economic growth.
Dhakal also stressed the importance of addressing issues such as the working capital loan guidelines and rural economic development. He urged the central bank to simplify credit provisions and make remittance inflows more accessible.
Key Recommendations from FNCCI
Loan Restructuring and Rescheduling: FNCCI pointed out the rising non-performing loans due to high-interest rates and recommended provisions for loan restructuring.
Sectoral Credit Policies: Senior Vice President Anjan Shrestha suggested redirecting bank liquidity toward productive sectors and offering differentiated interest rates for industries and trade.
Support for SMEs: The delegation urged the central bank to prioritize refinancing small and medium enterprises (SMEs) and facilitating project loans based on viability assessments.
Collaborative Path Forward
Immediate Past President Shekhar Golchha underscored the need for the central bank to play a proactive role in energizing the overall economy, noting that positive economic indicators have not translated into tangible economic momentum. Similarly, FNCCI Vice Presidents Hem Raj Dhakal and Jyotsna Shrestha, along with Treasurer Bharatraj Acharya, called for monetary policies that stimulate market demand.
Governor Paudel’s commitment to engaging stakeholders and addressing the private sector’s concerns sets a positive precedent for a collaborative and stable economic future. With the private sector’s active participation and targeted policy interventions, Nepal’s economic recovery and growth appear to be on a promising trajectory.
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