Legal clarity essential for economic development: NRB governor

KATHMANDU: Nepal Rastra Bank (NRB) Governor Dr Biswo Nath Poudel has said that legal clarity is essential for economic development.

Speaking on Thursday as he welcomed the new executive committee of the Society of Economic Journalists – Nepal (SEJON), Governor Poudel noted that a lack of legal clarity often creates problems in carrying out work and that laws must align with their intended purpose.

He added that legal clarity is also required to resolve issues arising from the country’s recent situation. “Legal clarity is needed in all sectors, especially for journalists. If the law is not interpreted well when writing news, there is a risk of sending the wrong message, and everyone should be aware of this,” he said, confirming that the central bank is ready to cooperate with SEJON.

Dr Poudel said there would be no shortage of resources for the reconstruction of structures damaged during the Gen-Z protests. “A large amount of resources is needed for reconstruction, but more important than that is the improvement in good governance and administrative efficiency,” he added.

He acknowledged that attacks on private sector during the protests have heightened businesspeople’s concerns but said boosting morale in that sector is the only way forward. “Many private business buildings were damaged during the protests, but now our priority should be to create an investment environment in the country and attract foreign investment. If we can first create an environment to retain domestic investment here, it will not take long for the economy to become dynamic,” Dr Poudel said.

He further mentioned that political stability, an investment-friendly environment and increased private sector morale are necessary for economic development, and that system-wide reforms in the economy are required to encourage businesspeople.