Monetary policy boosts morale of investors

By A Staff Reporter,Kathmandu, Dec. 10:President of the Federation of Nepalese Chambers of Commerce and Industry Chandra Prasad Dhakal said that the first quarter review of the monetary policy made public by the Nepal Rastra Bank on Friday will increase the morale of investors to some extent and help bring the economy back to normal.

Inaugurating the Sudurpashchim Festival 2024, Dhakal said that many issues that have been raised by the private sector for a long time have been included in the review of monetary policy and this will convey a positive message to investors and the private sector.

“NRB seems to have adopted flexibility in bank rate, policy rate, loan restructuring and house and share loan in the review of monetary policy. We have been continuously raising these issues for a long time. The central bank incorporated these issues. It can help to raise the morale of investors and promote investment,” he said.

President Dhakal said that if the liberal monetary policy introduced by the NRB had come up on time, thousands of small and medium businesses and businessmen would not have been displaced.

“On behalf of the private sector, the FNCCI has repeatedly requested the Nepal Rastra Bank to make special arrangements in the monetary policy to bring the economy into a rhythm. Now our demands have been addressed. How much will the latest provision bring the economy back to normal? That remains to be seen,” he said.

He said that due to the lack of coordination between the state agencies, the investment environment could not be created, and the private sector raised its voice that the economy could not be brought to the right track, and the Prime Minister himself took it positively and played a coordinating role.

“Even though all the state agencies were saying that they were doing good work, the economy was deteriorating. We, the private sector, requested the Prime Minister to address this. The PM organised an all-party discussion and activated the Dialogue Council. We expect that this will facilitate coordination and cooperation between the private sector and state agencies,” he said.

He said that the private sector is committed to creating an environment for investment within the country to promote investment.