NRB Governor Poudel & FNCCI Meet: Boosting Nepal’s Economic Stability & Private Sector Growth
21st May 2025, Kathmandu
The newly appointed Governor of Nepal Rastra Bank (NRB), Dr. Bishwanath Poudel, held a meeting with a delegation from the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) on Wednesday.
NRB Governor Poudel FNCCI Meet
The discussion centered on policy stability, predictable decision-making, and ways to energize the private sector.
Governor Commits to Predictable Policies
Dr. Poudel shared his commitment to formulating stable and predictable policies. He emphasized the importance of consultation with stakeholders. According to him, the central bank’s decisions will not come as a surprise. They will instead be based on economic realities and feedback.
“The private sector is the driver of the economy. We need economic stability to keep it moving. Our decisions must be predictable,” he said.
He stated that rather than making sudden decisions in the banking sector, it’s better to consult stakeholders first. He believes this process helps maintain policy stability.
FNCCI Urges Investment-Friendly Approach
FNCCI President Chandra Prasad Dhakal congratulated Dr. Poudel on his appointment. He presented key suggestions on behalf of the private sector. Dhakal called on NRB to introduce programs that raise business morale and create a friendly investment environment.
He pointed out a serious concern. Even though interest rates have dropped this year, credit flow has remained low. This has discouraged many businesses.
“To support the economy, both monetary and non-monetary steps are now essential,” said Dhakal.
Demand for Stable Long-Term Policies
FNCCI has been pushing for an “Investment Decade” with stable policies for the next 10 years. Dhakal repeated this demand. He said inconsistent policies have slowed investments.
He added that economic growth requires long-term planning. The central bank must offer consistency in its monetary stance to regain investor trust.
Support for Rural Economy and Smooth Remittance
Dhakal highlighted the need to support Nepal’s rural economy. He argued that without rural progress, overall economic growth is impossible. He also called for policies to ease remittance flows.
“Rural dynamism and a free flow of remittance are essential to economic revival,” he noted.
Working Capital Loan Guidelines Under Scrutiny
Another major concern from FNCCI was the central bank’s current working capital loan guidelines. Dhakal said the guidelines are too restrictive for many sectors.
He recommended revising them to match the actual needs of businesses. According to FNCCI, this would help revive markets that have remained stagnant.
Concerns Over Non-Performing Loans
FNCCI raised alarms about rising bad loans this fiscal year. The organization blamed previous years’ high interest rates and weak repayment capacity.
Business owners and ordinary citizens are struggling to pay EMIs. FNCCI urged the central bank to allow loan restructuring and refinancing.
Former FNCCI President Weighs In
Former FNCCI President Shekhar Golchha attended the meeting. He acknowledged that several economic indicators are positive. However, he said the economy remains inactive.
“The central bank must step up and help reactivate the entire economy,” he said.
Use Excess Liquidity for Productive Investment
FNCCI Senior Vice President Anjan Shrestha offered another suggestion. He said banks currently have excess liquidity. He urged the central bank to redirect these funds to productive sectors.
He also recommended introducing differential interest rates. Loans for industries and businesses should have better rates compared to others, he said.
Other FNCCI Leaders Add Input
Vice Presidents Hemraj Dhakal and Jyotsna Shrestha, along with Treasurer Bharatraj Acharya, presented their views. They stressed the need for monetary tools that focus on generating market demand.
They believe policies must aim to stimulate the real economy, not just maintain macroeconomic figures.
List of Key Recommendations Submitted to Governor
The FNCCI delegation submitted a list of specific recommendations, including:
Immediate implementation of concessional loans for productive sectors, as outlined in the national budget.
Ensuring small and medium enterprises (SMEs) get refinancing support.
Promoting project-based lending based on the viability of the project, not just collateral.
FNCCI said these steps would help businesses grow and restore financial momentum in the country.
Governor Promises Cooperation
Governor Dr. Poudel responded positively to the suggestions. He thanked the FNCCI team for their input. He said the central bank will maintain close coordination with stakeholders going forward.
“The NRB will continue playing an active role in keeping the economy vibrant,” he assured.
Dr. Poudel repeated his belief that policy decisions should be forward-looking and inclusive. He recognized the importance of working together with the private sector to overcome economic challenges.
A Constructive First Meeting
This meeting marked the first official interaction between the central bank’s leadership and Nepal’s top private sector body under the new governorship. Both sides shared a common goal—reviving Nepal’s economy with practical, stable, and business-friendly policies.
As economic uncertainties linger, such dialogue between the central bank and business leaders is seen as a crucial step toward restoring market confidence.
For more: NRB Governor Poudel FNCCI Meet
