'Monetary policy should prioritize investment in productive sector'

Kathmandu, July 20: The lawmakers have suggested that the Nepal Rastra Bank (NRB) should bring the monetary policy for the fiscal year 2080/081 BS to increase investment in the productive sector and create more jobs.     

At a meeting of the Finance Committee of the House of Representatives (HoR) on Thursday, the MPs said that the monetary policy should focus on creating domestic production to make a robust national economy. Most of the Committee members said that the new monetary policy should prioritize the agriculture sector.     

On the occasion, Former Finance Minister Bishnu Prasad Poudel asked the NRB to ponder on applying best policies that create more jobs and ensure increased productivity.     

Poudel viewed that a moderate monetary policy was needed instead of tough and flexible. "The current situation is the result of the past. So it is required to review the policies released in the past," he added.     

Likewise, lawmaker Dr Swornim Wagle said that there was no balance between the economic growth rate and loan investment adding that the banks and financial institutions made their loan investment more on unproductive sector.     

Dr Wagle stated that loan in the productive sector should be increased by tightening loans on real estate sector.     

Lawmaker Gyan Bahadur Shahi claimed that the BFIs were making unfair benefits by investing loans on high interest rate.     

Also speaking at the meeting, lawmaker Biraj Bhakta Shrestha said that private sector has not put its faith on the government policies and added that private sector was in need of psychological backup.     

Agriculture, innovation and micro-enterprises should be promoted in credit release, according to Shrestha.     

 Similarly, lawmaker Bhagwati Chaudhary said that the small and medium-sized enterprises should get loan in an accessible manner and the micro-finance institutions should be regulated.     

Likewise, Governor of NRB Maha Prasad Adhikari said that the new monetary policy would focus on achieving economic growth rate set by the government, inflation control and management of external sector in the economy. (RSS)