Fiscal Monetary Policy Meet Nepal: NPC and NRB Leaders Discuss Coordination for Economic Growth
28th May 2025, Kathmandu
The Vice Chairman of the National Planning Commission (NPC), Prof. Dr. Shiva Raj Adhikari, met with Nepal Rastra Bank (NRB)’s newly appointed Governor, Prof. Dr. Biswo Nath Paudel, on Tuesday at the NPC office in Singha Durbar.
Fiscal Monetary Policy Meet Nepal
The meeting centered on the coordination between fiscal and monetary policies. Both officials emphasized the need to implement these policies side by side. They discussed how these two economic tools should complement each other to improve Nepal’s economy.
Economic Recovery In Focus
A major part of the discussion focused on economic recovery. The Vice Chairman and the Governor agreed on the goal of bringing Nepal’s economy back to the pre-COVID-19 level. They also stressed achieving sustainable, inclusive, and high economic growth.
This shared goal highlights the need for a coordinated approach to economic planning. Both leaders showed commitment to long-term development.
NPC Shares Ongoing Reforms
During the meeting, Dr. Adhikari shared several key reforms initiated by the NPC. These include:
Reprioritization of development projects
Improvements in fiscal transfers to provinces and local levels
Operationalization of the Project Bank
Medium-Term Expenditure Framework (MTEF) development
According to him, these steps aim to ensure effective use of public funds. The NPC believes that better planning and spending can lead to better results.
He also explained how these reforms will help in setting national priorities. Dr. Adhikari highlighted that planning and budgeting must align to avoid waste and delays.
NRB To Support Investment-Friendly Environment
In response, Governor Paudel outlined NRB’s plans to support economic growth. He emphasized the role of the central bank in creating an investment-friendly climate, especially for infrastructure development.
He stated that the private sector needs encouragement and support. To achieve this, NRB will ease policies and offer guidance to attract private investments.
Dr. Paudel acknowledged the challenges in infrastructure financing. However, he showed confidence that with coordinated efforts, these challenges can be addressed.
Mutual Support In Policy Implementation
Both parties agreed that fiscal and monetary policies must not work in silos. Instead, they should move forward in sync. They pointed out the importance of mutual support in policy design and implementation.
This coordination is crucial to avoid overlaps and inconsistencies. When both policies align, the impact on the economy becomes more effective.
They also noted that regular communication between institutions can improve results. Technical-level consultations will continue in the future to keep progress on track.
Confidence In Joint Efforts
Dr. Adhikari and Dr. Paudel expressed optimism about working together. They believe that by sharing responsibilities and coordinating actions, Nepal can achieve its economic goals faster.
The two officials also agreed to hold similar meetings in the future. These sessions will help in resolving emerging issues and improving decision-making.
Coordinated Policy For Economic Stability
Nepal is facing several economic challenges, including inflation, low private investment, and external pressures. In such a scenario, coordination between the NPC and NRB becomes essential.
Dr. Adhikari noted that the Planning Commission will continue to focus on result-oriented reforms. He added that economic policies must serve the people by driving real improvements in their lives.
Governor Paudel echoed this view. He explained that monetary policy will aim to support economic activities without causing instability. This means balancing inflation control with growth promotion.
Need For Continued Dialogue
The meeting ended on a positive note. Both officials recognized the importance of continued dialogue between their institutions. They agreed to strengthen communication channels and share data and insights regularly.
Such cooperation can make national policies more effective. It can also reduce duplication of efforts and improve public service delivery.
Shared Vision For The Future
The shared vision of the NPC and NRB includes strong, inclusive, and sustainable growth. Both institutions want to build an economy that works for all citizens.
They understand that this will require focused efforts, policy discipline, and smart investments. Their collaboration is a step in the right direction.
As Nepal aims to rebuild stronger post-COVID, such coordinated policy actions can lead to a more resilient and dynamic economy.
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