CNI urges central bank for flexible monetary policy

By A Staff Reporter,Kathmandu, July 4:The Confederation of Nepal Industries has requested the Nepal Rastra Bank (NRB) to introduce a monetary policy that will make the country's economy vibrant. 

The newly elected officials of the CNI met governor of NRB Maha Prasad Adhikari on Sunday and asked him to come up with a monetary policy that will boost the morale of the private sector and make the economy viable.

CNI President Rajesh Kumar Agrawal said that the morale of the private sector has shrunk when there is a decrease in the overall demand. 

"In the past, due to the lack of liquidity, the industrialists had postponed their plans to expand investment, but now, despite having liquidity, they have not been able to take loans due to high interest rates and various working capital loan related provisions," said Agrawal. 

He said that in order to achieve the economic growth target of 6 per cent set by the government in the next fiscal year 2023/24, the private sector expects a flexible monetary policy to boost the morale of the private sector and make the economy viable. 

He said that in order to achieve the targeted economic growth, private sector credit should be increased by at least 12 per cent and while extending credit, emphasis should be placed on the productive sector. 

President Agrawal said that the interest rate of loans in the productive sector should be low to make the domestic products competitive and promote domestic industries.

In the meeting, the governor said that NRB would adopt the policy suggestions given by the CNI to reinvigourate the country's economy.

Adhikari congratulated the newly elected working committee of the CNI and wished them a successful tenure.