Monetary policy will revitalize economy: Finance Minister Mahat

LUMBINI: Minister for Finance, Dr. Prakash Sharan Mahat, has expressed confidence that the Monetary Policy for the Fiscal Year 2023/24, unveiled by the Nepal Rastra Bank (NRB) on Sunday, will revitalize the economy.

“The monetary policy has taken a significant step in reducing interest rates, and this is likely to stimulate the flow of loans towards the private sector,” Dr. Mahat said, addressing a press meet in Butwal. He said that the lowered interest rates would encourage increased private-sector investment, leading to more job opportunities.

“With the interest rate now reduced to 6.5%, banks are expected to follow suit and decrease their interest rates, resulting in a higher capital flow to the market and ultimately creating a vibrant economy,” added Dr. Mahat.

Regarding revenue mobilization, Mahat assured that the government has already devised plans to meet the targets set in the budget. He expressed concern over sluggish spending and urged government agencies to expedite the tendering process of development projects to accelerate spending.

“Once capital spending gains momentum, our economy will be on the right track,” he added.

Mahat claimed that the recent gold haul at the Tribhuvan International Airport could become possible because of the government’s policy of rewarding individuals who provide valuable tips. “The government is committed to taking the investigation to a logical conclusion,” he added.