Kathmandu, July 9: Federal parliament lawmaker and economic experts have stressed on launching the monetary policy that pays adequate attention to fiscal discipline and vibrant economy. The incoming monetary policy requires creating atmosphere for investment promotion, they argued.
They were voicing for it during a meeting of the Financial Committee under the House of Representatives on upcoming monetary policy of the Nepal Rastra Bank. The increase of loan in production and employment creation is another suggestion expressed during the meeting held on Wednesday.
Former Vice Chairman of the National Planning Commission, Dr Min Bahadur Shrestha, suggested easy flow of project loan except for real estate collateral. He stressed reconsidering present 65 percent of total loan to collateral on realty.
The sources in banking sector is a public property, so only Rs 404 billion amount of investors out of Rs 700 billion reserve was used, he reminded.
Another expert Nar Bahadur Thapa wondered there was no expected investment despite maximum liquidity and low loan rate. “If economy is not vibrant, it creates disappointing situation. More investment is required for scientific agriculture,” he recommended.
Former finance minister Barsha Man Pun said, “Monetary policy should focus on making fiscal behaviour disciplined while ensuring vibrant economy.” He recommended promoting small and medium-scale industries.
Another former finance minister Dr Prakash Sharan Mahat said monetary policy can correct past aberrations and set proper action plan. “Monetary policy’s effectiveness lies in its contribution to a vision for economic reform. Adoption of new technology in agriculture needs promotion.”
Committee member and economist Dr Swarnim Wagle observed the country was in a vicious cycle of political interference in economic structure and process.
Lawmaker and businessperson Binod Chaudhary urged the government to create atmosphere for resulted-oriented investment. Investors’ must be encouraged, he stressed.
