9th July 2025, Kathmandu
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has officially submitted its suggestions for the upcoming Monetary Policy of Fiscal Year 2082/83.
FNCCI Monetary Policy Suggestions
Acting President Anjan Shrestha, along with other officials from FNCCI, met with Nepal Rastra Bank Governor Maha Prasad Adhikari on Tuesday to present their policy recommendations.
Focus On Economic Revitalization And Financial Risk Mitigation
The FNCCI has urged the central bank to prioritize issues such as the ongoing economic slowdown, rising financial sector risks, and the dominance of the informal economy. According to the federation, these areas must be addressed to stimulate the recovering economy, restore private sector confidence, and reduce money laundering risks.
Shrestha noted that due to weak governance and a lack of infrastructure, policy reforms have failed to yield desired outcomes. Hence, the FNCCI emphasized the need for infrastructure-focused monetary policy planning.
Strong Push For Loan Restructuring And Working Capital Support
One of FNCCI’s key recommendations is the full implementation of loan rescheduling and restructuring provisions included in the national budget. It stressed that such relief programs must be made accessible to all businesses—small, medium, and large.
Moreover, the federation called for improved working capital financing and clear mechanisms for interest waiver programs. It suggested that the policy should be precise and enforceable to ensure effectiveness.
Support for Productive Sectors And Industry-Specific Interest Rates
The FNCCI suggested facilitating working capital loans for productive sectors, including tourism, construction, and housing development. It emphasized the need for loan approvals based on business nature, giving autonomy to banks and borrowers.
In response to the declining contribution of the industrial sector, which now stands at just 12.4% of GDP, FNCCI proposed a 1-2% lower interest rate on industrial loans compared to trade sector loans.
Special Measures For Export-Oriented And Women-Led Enterprises
With Nepal set to graduate from Least Developed Country (LDC) status by 2026, FNCCI recommended policy provisions to provide concessional loans to export-driven industries run by SMEs, cottage industries, and women entrepreneurs.
The federation also pushed for organized interest subsidies on loans tied to production and a maximum 2% premium rate for loans up to NPR 50 million.
Youth Entrepreneurship And Watchlist Reforms
FNCCI stressed the importance of encouraging Gen-Z youth into entrepreneurship. It proposed enabling business registration through the Nagarik App and allowing project loans up to NPR 10 million. The federation also recommended implementing findings from its feasibility study on this matter.
Additionally, FNCCI called for relaxation of current ‘Watch List’ loan provisions to help struggling businesses avoid unnecessary restrictions.
Concessional Loans For Families Of Migrant Workers
The federation proposed concessional loan facilities for families of migrant workers who remit money through formal channels. It stressed that the current targeted loan policy should be revised to prioritize production, tourism, and infrastructure sectors.
To manage rising non-performing assets of financial institutions, FNCCI urged the formation of an Asset Management Company.
Allowing Domestic Remittance Through Licensed Operators
Currently, domestic remittance via remittance companies is not allowed. FNCCI highlighted how this affects low-income groups, students, informal workers, and people in remote areas without bank accounts or smartphones.
Hence, it recommended allowing licensed remittance companies to facilitate internal transfers of up to NPR 100,000 using national ID verification.
Expansion Of Housing Loan Limit And KYC Simplification
FNCCI also called for raising the housing loan ceiling from NPR 20 million to NPR 30 million. To support the government’s target of constructing 100,000 houses, it recommended necessary policy adjustments.
The federation also pushed for integrating KYC with the national ID and making it accessible electronically. Furthermore, it suggested implementing QR code interoperability without any charges.
Policy Clarity On Foreign Investment And Tech Transfers
On the subject of foreign investment, FNCCI advocated for allowing Nepali businesses to set up sales outlets or processing factories abroad. It proposed enabling investment abroad of up to 25% of a company’s total exports.
Additionally, the federation requested clear policy provisions that allow Nepali citizens to receive sweat equity shares in return for providing foreign companies with specialized services or technology.
Encouraging Private Equity And Venture Capital
FNCCI suggested that banks should not be charged extra capital fees when investing in private equity or venture capital funds. It also recommended that such investments be considered equivalent to lending in priority sectors.
Call for an Effective and Dynamic Monetary Policy
On the occasion, FNCCI Vice Presidents Hem Raj Dhakal and Jyotsna Shrestha, along with Treasurer Bharat Raj Acharya, reiterated the need for a practical and effective monetary policy. They emphasized addressing ongoing economic challenges to keep the economy vibrant.
The FNCCI’s extensive set of recommendations aims to align the upcoming monetary policy with real-time business challenges, ensuring greater financial inclusion, private sector growth, and national economic resilience.
For more:- FNCCI Monetary Policy Suggestions