CNI urges NRB to use monetary policy to revive weak domestic demand

KATHMANDU: Confederation of Nepalese Industries (CNI) on Wednesday handed a set of recommendations to Nepal Rastra Bank (NRB) for the monetary policy for upcoming fiscal year 2026/27.

CNI President Birendra Raj Pandey presented the proposals to NRB Governor Dr Biswo Nath Poudel and urged a policy that takes account of strong external‑sector macroeconomic indicators while tackling prolonged weakness in domestic activity.

The submission asks the central bank to focus the upcoming policy on three priorities: boosting economic activity to revive weak market demand, improving monetary policy practices, and pursuing structural reforms within the NRB.

CNI proposed several measures, including a gradual reduction in the directed‑lending limit; sectoral working‑capital guidelines; modernisation of the interest‑rate determination system; an extended timeframe for classification and blacklisting of collateralised loans; a special credit facility for startups linked to the government’s enterprise support; and the formation of an empowered monetary policy committee within the NRB.

CNI President Pandey said a monetary policy that addresses these issues is expected to lift market demand, restore investor confidence and help economic recovery.

Receiving the recommendations, Governor Poudel said the upcoming monetary policy will prioritise interest‑rate management and financial stability. He emphasised that the private sector is the main driver of the economy and that close coordination between the regulator and industry will be important to promote investment and activity.

Former CNI President Hari Bhakta Sharma, Governing Council member Shashi Kant Agrawal, CNI Bank and Finance Committee chairperson Barun Kumar Todi and other officials attended the meeting.