Positive Indicators, Critical Concerns: Pre-Monetary Policy Dialogue Highlights Economic Hopes and Challenges
The Pre-Monetary Policy Discussion organized by the Management Association of Nepal concluded in Kathmandu with Nepal Rastra Bank (NRB) Governor Dr. Maha Prasad Adhikari as the chief guest. The event featured participation from policymakers, bankers, entrepreneurs, and experts.
During the program, Governor Dr. Adhikari stated that current economic indicators are positive, with adequate liquidity in banks, over $18 billion in foreign reserves, and low interest and inflation rates, offering a strong foundation to accelerate economic growth. However, he pointed out that loan demand remains low despite favorable conditions.
He also stressed the need for directed credit policies toward sectors like agriculture, energy, and SMEs, but warned about rising levels of non-performing loans. Additionally, he emphasized equitable wealth distribution to maintain economic stability.
Participants from various sectors raised concerns, including:
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Removing base rate to boost competitiveness (Birendra Raj Pandey, CNI President)
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Rethinking working capital loan guidelines and making them sector-specific (Hemraj Dhakal, FNCCI Vice President)
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Avoiding frequent changes in loan-to-value ratios, which disrupt businesses (Deepak Malhotra, Nepal Chamber of Commerce Vice President)
The Management Association announced it will continue hosting such discussions annually to bring stakeholders and policymakers together.
