Kathmandu. KATHMANDU: The Confederation of Nepalese Industries (CNI) has furnished recommendations to Nepal Rastra Bank (NRB) for the monetary policy for the fiscal year 2083/84.

On behalf of the Confederation of Nepalese Chambers of Commerce and Industry, President Birendra Raj Pandey said that Governor Prof. Dr. He also handed over recommendations to Dr Bishwanath Poudel for the upcoming monetary policy.

The CNI suggested bringing the monetary policy keeping in mind that the macro indicators of the external sector were encouraging and strong but the domestic economic activities were out of rhythm for a long time.

The Confederation has suggested that the monetary policy should be focused on three aspects. It has suggested increasing economic activities to raise the immediate low market demand, reforming the monetary policy practice and moving towards structural reforms of the NRB.

The committee has suggested reducing the limit of directed loans on the basis of percentage in a phased manner, implementing the guidelines on working capital on a sectoral basis, modernizing the interest rate determination system, extending the deadline for classification and blacklisting of collateralized loans, establishing a special loan facility for start-ups associated with the government’s enterprise facility and forming a high-powered monetary policy committee within the Nepal Rastra Bank.

Chairman Pandey said that the monetary policy is expected to help in the revival of the economy by boosting market demand, investors’ confidence.

Accepting the suggestion of the Confederation of Nepalese Enterprises (CNI), Governor Poudel said that the monetary policy would be mainly focused on the interest rate and ensuring financial stability. Stating that the private sector was the main driver of economy, he said that close coordination between the regulatory body and the industry sector was inevitable in the days to come to promote investment and economic activities.