MAN invites NRB governor to discuss monetary policy for FY 2025/26

KATHMANDU: Management Association of Nepal (MAN) invited Nepal Rastra Bank Governor Biswo Nath Poudel to discuss monetary policy for forthcoming fiscal year 2025/26 on Monday.

The event, titled ‘Discussion Programme: Monetary Policy for FY 2082/83’, focused on the nation’s monetary framework. Governor Poudel assured attendees that their suggestions would be taken into account when drafting the new policy.

“There has been considerable interest in monetary policy recently, which I believe is a positive development. We have received numerous suggestions and feedback from various sectors,” he said.

“At present, we have surplus liquidity, with almost Rs 180–200 million in foreign currency reserves and deposits of around Rs 7 trillion, all against a backdrop of low inflation. From one perspective, our resources are substantial, yet those who are meant to borrow are not doing so. The expected level of development is not being realised.”

Banks report stagnation in lending in the Rs 20–50 million category, with a lack of borrowers hindering market activity. In such circumstances, loan allocation and optimisation have not been fruitful. According to the governor, the greatest challenge is wealth concentration, which has introduced instability into the economy. Several measures were identified and discussed to address these issues.

“Monetary policy and fiscal policy are interrelated, but focusing solely on one can lead to divergence between the two. For sustainable development, monetary and fiscal policies must work in tandem,” Governor Poudel added.

A panel discussion followed, during which the governor responded to concerns raised by representatives from the automotive, health, pharmaceutical, insurance and other industries convened by MAN.

MAN subsequently drafted a report summarising the day’s issues and suggestions for submission to the governor.