Kathmandu. Former President of Nepal Chamber of Commerce, Rajendra Malla, has said that the monetary policy of the fiscal year 2083/84 has made positive efforts to keep the economic activities dynamic while maintaining financial stability.

Commenting on the monetary policy, Malla said that the policy has incorporated some positive provisions to further strengthen the financial system and increase confidence in the market. He, however, said that more concrete arrangements are needed to reduce the cost of doing business as expected by the private sector, reduce the interest on loans and overall financial cost, and ensure the flow of credit effectively to the productive sector.

He pointed out the need of further expanding the concessional loan programme for start-ups and innovative businesses, adding that a one-door KYC system should be implemented by accelerating digitization. This will reduce unnecessary paperwork and procedural delays in course of loan disbursement and will create a conducive environment for the private sector.

Stating that the success of the monetary policy would depend on its effective implementation, Malla stressed the need of effective coordination and collaboration among the government, Nepal Rastra Bank and the private sector. He expressed the belief that investment, production, job creation and economic growth could be accelerated through policy stability, investment-friendly environment and boosting the morale of private sector.