Himal Press 
KATHMANDU: Nepal Rastra Bank (NRB) Governor Biswo Nath Poudel has said the upcoming monetary policy will focus on the sustainable development of the country’s economic sector.
Speaking at a monetary policy discussion organized by the Society of Economic Journalists Nepal (Sejon) in Kathmandu on Sunday, Poudel said that the policy will aim to uplift all sectors, classes and communities, with an emphasis on long-term economic sustainability.
Acknowledging that banks have not been able to ensure sufficient credit flow to rural areas, he assured that such challenges would be addressed through the upcoming monetary policy. He added that there is a need to channel the growing liquidity into productive investments by identifying appropriate sectors.
He said there is a need to align monetary policy with fiscal policy and added that rising non-performing loans (NPLs) in agriculture and small and medium enterprises (SMEs) have created challenges for banks and financial institutions. “The problem cannot be solved by designing monetary measures solely for large entrepreneurs and businesses,” said Paudel.
He added that the new monetary policy will be framed with a focus on resolving issues in agriculture and SMEs, while bringing all other sectors along in the process.
“We want to encourage more credit flow into agriculture and SMEs, but NPLs in these sectors are increasing. We need to focus on resolving this issue,” he said.
Poudel added that the overall challenges facing the economy and financial sector cannot be addressed by the central bank alone. He said the fiscal policy must take the lead in mobilizing investment in large infrastructure projects such as energy, roads and bridges.
