Central Bank of Nepal convenes monetary policy implementation forum focused on mobilising investment for infrastructure and productive sectors

The Central Bank of Nepal completed an interaction programme in Kathmandu on the economic and monetary situation and the implementation of monetary policy, bringing together economists and representatives of organisations concerned with the economic and monetary sector. Governor Prof. Dr. Bishwanath Poudel highlighted weak infrastructure development and argued that institutional capacity building and a more conducive policy and institutional environment are needed to expand infrastructure and mobilise foreign investment. A working paper presented by Economic Research Department Executive Director Dr. Ramsharan Kharel reviewed the macroeconomic backdrop, the state of the economy and monetary sector, key challenges, policy efforts by the Government and the central bank, and a roadmap for long-term reforms. Discussants, including the Vice-Chair of the National Planning Commission Prithviraj Ligal, pointed to weak investment despite higher national savings, cautioned that excess liquidity needs to be channelled into productive sectors, and noted that a strong external sector can mask broader economic weakness; other participants raised the need to mobilise foreign exchange reserves for productive and infrastructure development, warned that persistently falling interest rates could encourage capital flight, and emphasised strengthening financial policy to support foreign investment and boost production and productivity.