Finance Committee meet: Stakeholders call for timely, growth-oriented monetary policy

KATHMANDU: Stakeholders have urged Nepal Rastra Bank (NRB) to adopt a timely and balanced monetary policy for fiscal year 2026/27 to support the country’s economic recovery.

At a meeting of the Finance Committee of the House of Representatives on Sunday, former central bank governors, banking and financial leaders and business representatives said monetary policy must restore confidence, boost production and strengthen financial stability while complementing fiscal measures and addressing issues omitted from the national budget.

Former Governor Deependra Bahadur Kshetry said the policy must stabilise the flagging economy and protect the central bank’s autonomy. Dr Chiranjibi Nepal called for respect for the bank’s independence and urged adherence to international best practice, proposing an Asset Management Company to tackle rising non-performing loans.

Former Governor Maha Prasad Adhikari said the current macroeconomic environment does not warrant tighter monetary measures, citing stable inflation and a satisfactory external sector, and warned against reversing earlier reforms aimed at boosting production and activity.

Stakeholders attend the 12th meeting of Finance Committee of the House of Representatives in Singha Durbar, Kathmandu, on Sunday, July 5, 2026. Photo: RSS

Stakeholders attend the 12th meeting of Finance Committee of the House of Representatives in Singha Durbar, Kathmandu, on Sunday, July 5, 2026. Photo: RSS

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Anjan Shrestha said the budget addresses some concerns but that the central bank must use monetary tools to resolve outstanding business issues. He stressed the need for government action to bring the private sector into confidence to raise production and create jobs.

Nabil Bank Chief Executive Officer (CEO) Manoj Gyawali called for legal reforms to simplify banking processes and urged a clear distinction between genuine and wilful loan defaulters.

Nepal Bankers’ Association (NBA) President Santosh Koirala recommended that policymakers align monetary policy with the current economic slowdown and consider revising loan-loss provisioning requirements.

Confederation of Banks and Financial Institutions Nepal (CBFIN) President Prachanda Bahadur Shrestha said the central bank should play a stronger supportive role by allowing greater flexibility in micro-supervision and bad loan classification to boost market confidence.

Representatives from Confederation of Nepalese Industries (CNI) and several economists also emphasised the need for a timely and responsive monetary policy to accelerate growth.