Last December, the government had amended 29 other laws along with the ordinance related to business environment improvement and investment promotion. The then government had encouraged foreign investment by amending various acts and laws to improve the investment climate. Even though the government has amended the Act to encourage foreign investment, it is very difficult to attract investment from many countries. Countries like China are proficient in their products, so their products are getting a very competitive market. As a result, they do not want to invest in other countries.

On the other hand, there are various challenges to attract investment in a non-coastal area like Nepal. It is a challenging task for Nepal to bring in foreign investment. Although Nepal has been trying to attract foreign investment since the past, foreign investment has not been able to come in. We have to move forward in order to produce some part of the goods needed for our country in our own country as we have to face many problems in foreign investment. For this, all the stakeholders need to move forward hand in hand.

The way Nepal is working in the energy sector, it needs to work in other sectors as well. We should follow the policy of producing some part of the goods needed by our country. Due to various reasons, work has not been done in the potential areas. At present, Nepal is not in financial crisis. However, some political and policy initiatives are urgent in the present situation.

Overall, there is a challenge in bringing investment in Nepal. At this time, Nepal Rastra Bank has also been identifying and facilitating investment areas to attract investment. Investment Board Nepal is also working to identify areas for investment. Along with the Investment Board, other agencies are also working to identify areas for investment. However, it will take some time to get results.

Looking at the recent market situation, the energy sector seems to be a bit buoyant. In other areas, there is more international competition. There is a perception that it is difficult to bring investment for anything other than what is consumed. The entrepreneurs of the country should be encouraged a little bit in the country. They should create an environment for them to invest by bringing in technology. Entrepreneurs in the country are also compelled to keep money in the bank and there is a need to provide necessary support to the industrialists to get out of such a situation. In the current situation, the investors within the country should work to win the trust of the investors by bringing in international investment.

Similarly, we amended more than half a dozen Acts during the Investment Summit to create an environment conducive for investment. Since then, there has been policy facilitation. However, we have not been able to publicize this policy at the international level. On the other hand, some challenges have arisen as the employees are not able to be instructed to work in such a way that they can get results.

The Nepal Rastra Bank (NRB) has already created an environment allowing foreign investors to take their earned wealth abroad for the protection of investors. Foreign investors can take the return of their investment abroad. There is no problem with that. Those who have submitted all the required documents are not prevented from taking returns. Foreign investors should not be discouraged because we have enough foreign currency. At the same time, we have been facilitating what the government does at the policy level.

Meanwhile, some foreign investors seem to be discouraged by the Genji agitation on September 23÷24. Various branches of banks and financial institutions have suffered some losses in the Genji movement. Nepal Rastra Bank is coordinating with the Nepal Army for its security. The Zenji movement also did not have any impact on the central bank’s headquarters. Only one office outside the security ring of the Rastra Bank has suffered some damage. There is no apprehension that the agitations will lead to violence in the Rastra Bank and it is completely safe.

The NRB has been coordinating with the Ministry of Home Affairs and the Nepal Army for the security of banks and financial institutions other than Nepal Rastra Bank. Since the financial system is the heart of the country, no one benefits from attacking this region. Similarly, even if the ATM booths of the banks are damaged, there is no situation to take the money. Therefore, it is important for the general public to understand that attacking banks is only a crime.

In the Genji movement, banks and financial institutions were attacked in a way. Now, the issue of collecting donations in banks and financial institutions has come up again. All such activities are considered economic crimes. Anyone who is involved in such crimes will come under the purview of the law.

Banks

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At present, the interest rates of banks and financial institutions are at a low point. The banking system has the highest liquidity in history. Banks are forced to maintain adequate liquidity due to lack of credit flow. In such a situation, the Rastra Bank is moving forward to address the inadequacy of the products of banks and financial institutions in various sectors including agriculture. The NRB is working with banks to monitor the adequacy of the products. The employees of the Rastra Bank or myself are getting information about the products of the bank directly.

Just like the Rastra Bank has brought new policies, banks should also bring new products. Banks will have to be a little aggressive on policies and new products. Banks need to be more innovative and creative. At present, there are many new areas in which banks can invest. Take the IT sector, for example. Loans can be expanded in a new way by properly monitoring and monitoring the loans that have been made in the agricultural sector, which has been investing in the past.

The government’s fiscal policy should identify new areas to spend by opening up the situation that has been stalled to prevent investment in certain sectors. If the government delays to find new areas to spend and banks do not become innovative, the liquidity in the banking sector will continue to increase.

Now the issue of changing the investment pattern is also being raised. Manufacturers around the world are facing problems in changing investment patterns. This is the case because China is also more manufactured. On the other hand, due to technology such as artificial intelligence and robots, the efficiency of some countries is very high, other countries are difficult to find, and are lagging behind in price competition. Countries with good efficiency now are in a position to protect the market even if they sell at a loss. We also need to be a little cautious due to the international situation. In such an environment, we also need to understand that some challenges have arisen in making investments.

On the other hand, there is a need to increase investment in energy and information technology sectors. Apart from this, there are many areas that need to be modernized in the country. For this, it is time to increase investment in roads, health, education, grocery stores, cinema halls, stadiums, sports clubs. There are many places to invest. Therefore, it is natural that the investment pattern will change over time. The Nepal Rastra Bank (NRB) has been issuing directive loans at a time when the investment pattern is changing.

Out of the 20 commercial banks in operation, the loan portfolio review is being done by the International Auditor of 10 commercial banks. We are preparing to conduct the quality test of the assets of these 10 commercial banks soon. Looking at the situation so far, it seems that there may be some changes marginally. If there is a significant difference, the NRB will audit other banks through this process. If there is not much difference between the NRB and the international audit, we will move forward normally.

Monetary policy has a limited role. In which there is a lot of liquidity in the banks, the Rastra Bank moves forward to make the overall economic policy of the country successful by investing as many loans as possible. That is the power of Singha Durbar. The Rastra Bank will move forward respecting the power of Singha Durbar. It is the job of the Rastra Bank to make the economic policies of the government successful. Singha Durbar is the place of the legitimate government.

Nepal Rastra Bank (NRB) has been working keeping in mind the stability and stability of the country’s financial sector. Based on the international situation, by looking at the liquidity situation of the country, we will make a good assessment and decide when to give incentives to whom, to whom, to decide the sectors, when to give incentives to which sector and when to give incentives to another sector. The Rastra Bank works to make the economic policies brought by the government successful. It is also the responsibility of the Rastra Bank to make the fiscal policy successful.

(Article by Nepal Rastra Bank Governor Prof. Dr. Poudel)