Chamber’s Monetary Policy Recommendations 2025 To Nepal Rastra Bank For Economic Growth
10th July 2025, Kathmandu
The Nepal Chamber of Commerce has formally submitted 35 important recommendations for the upcoming monetary policy to Nepal Rastra Bank Governor Dr. Bishwanath Poudel. These proposals aim to strengthen Nepal’s economy and financial sectors through better coordination between the government’s budget and monetary policies.
Chamber Monetary Policy Recommendations 2025
Economic Recovery and Financial Sector Revival
Chamber President Kamlesh Kumar Agrawal emphasized that the recommendations are designed to boost economic activity and address the current slowdown. The chamber pointed out issues such as an imbalance between demand and supply, shrinking private sector assets, and a lack of investment interest despite sufficient liquidity in banks and financial institutions.
The chamber’s statement also highlighted growing concerns over non-performing loans. It revealed that more than 100,000 entrepreneurs have been blacklisted in the past three years due to loan defaults and difficulties depositing cash in bank accounts. The chamber urged banks and financial institutions to consider debt restructuring based on business types. This approach could restore confidence among struggling entrepreneurs and help prevent widespread business failures.
Key Policy Suggestions to Support Private Sector Growth
Debt Restructuring and Liquidity Support: Propose temporary debt rescheduling to help affected entrepreneurs regain confidence and revive their businesses.
Capital Loan Guidelines: Recommend abolishing current working capital loan restrictions until the economy recovers, making it easier for businesses to access working capital.
Housing and Real Estate Loan Facilitation: Suggest full risk coverage (100%) for loans above NPR 5 million in real estate transactions, and maintaining an 80:20 loan-to-value ratio for housing finance.
Interest Rate and Spread Regulation: Advocate for a 5% base interest rate and a 3.5% spread, along with sustainable single-digit interest rates for small and medium enterprises to encourage growth.
Removal of Stock Market Loan Ceiling: Call to remove the NPR 150 million loan limit for individuals in the stock market to attract more investment.
Support for Cooperative Sector: Request urgent action to resolve the cooperative sector crisis, which is affecting small entrepreneurs and their savings.
Formalization of Informal Economy: Recommend lifting cash deposit limits and stopping police intervention in cash transactions to bring informal funds into the banking system.
Promotion of Electric Vehicles (EV): Suggest providing up to 80% loan facilities for importing electric vehicles, coupled with supportive policies to reduce trade deficits and create jobs.
Utilization of Foreign Exchange Reserves: Propose using Nepal Rastra Bank’s foreign currency reserves of over NPR 24 trillion to support economic growth and infrastructure development, enhancing self-reliance.
Governor’s Commitment
After receiving the recommendations, Governor Dr. Biswo Nath Poudel assured that the upcoming fiscal year’s monetary policy would focus on revitalizing the financial sector by incorporating these suggestions. He committed to aligning monetary and fiscal policies to overcome economic stagnation.
Additional Recommendations
Maintain the government’s economic growth target at 6% and keep inflation below 5.5%.
Simplify banking procedures and documentation to improve customer access.
Promote export industries with subsidized credit and better infrastructure.
Enhance inter-bank data sharing to reduce duplicate Know Your Customer (KYC) requirements.
Encourage asset documentation and transparent income verification to attract domestic investment.
Strengthen credit facilitation for the private sector to increase liquidity.
The Nepal Chamber of Commerce expressed optimism that these coordinated policy measures will build investor confidence, stabilize the economy, and accelerate sustainable growth in Nepal.
For more:- Chamber Monetary Policy Recommendations 2025
