Kathmandu: Lawmakers in Nepal have proposed that the Nepal Rastra Bank (NRB) should introduce a monetary policy for the fiscal year 2080/081 BS with a focus on increasing investments in the productive sector to boost job creation and strengthen the national economy.

During a meeting of the Finance Committee of the House of Representatives (HoR), members emphasized the importance of fostering domestic production to ensure a robust economic foundation, with particular emphasis on prioritizing the agriculture sector.

Former Finance Minister Bishnu Prasad Poudel urged the NRB to develop effective policies that generate more employment opportunities and foster increased productivity. He advocated for a moderate monetary policy, avoiding extremes of being too rigid or overly flexible. Poudel also emphasized the need to review past policies to understand their impact on the current economic situation.

Lawmaker Dr. Swornim Wagle pointed out an existing imbalance between economic growth rates and loan investments, noting that many banks and financial institutions were directing their investments towards unproductive sectors. Dr. Wagle suggested that loans should be channeled more towards the productive sector while tightening lending in the real estate sector.

Similarly, lawmaker Gyan Bahadur Shahi raised concerns about banks taking advantage of high-interest rates and making unfair profits from loan investments. He emphasized the need for a fair and transparent loan system.

Another lawmaker, Biraj Bhakta Shrestha, highlighted the lack of trust the private sector had in government policies and stressed the importance of providing psychological support to encourage private sector involvement. Shrestha proposed promoting credit release for agriculture, innovation, and micro-enterprises.

Furthermore, lawmaker Bhagwati Chaudhary emphasized the necessity of ensuring accessible loans for small and medium-sized enterprises and called for appropriate regulation of micro-finance institutions.

Governor of NRB, Maha Prasad Adhikari, asserted that the new monetary policy would primarily target achieving the government's economic growth rate objectives, while also focusing on controlling inflation and effectively managing the external sector in the economy.

In conclusion, the proposed monetary policy for the fiscal year 2080/081 BS in Nepal is expected to prioritize investments in the productive sector, especially agriculture, innovation, and micro-enterprises, with the aim of bolstering the national economy, creating more job opportunities, and ensuring sustainable economic growth. Additionally, there is an emphasis on addressing the imbalance in loan investments and promoting fair and accessible lending practices across various sectors of the economy.