Kathmandu, 9 June : Finance Minister Dr Prakash Sharan Mahat has underlined the need of a liberal monetary policy for the acceleration of economic activities.
Taking part in a discussion on “Nepal’s economic situation and upcoming monetary policy”, the Finance Minister said the economy would be vibrant if the issue of policy rate was addressed during the determination of a monetary policy for the upcoming fiscal year.
A liberal policy is capable of making the economy vibrant, according to the Finance Minister. “The liberal economic policy brought targeting the recovery of economy after COVID-19 pandemic was tightened being based on external economic issues. The same move has led to issues in domestic economic setting.” He took time to insist on the collaboration between the Finance Ministry and the Nepal Rastra Bank to promote the nation’s economy.
As he said, the government wished the NRB to function independently and make efforts for the improvement of overall economy. There should be coherence between the finance policy and monetary policy to operate the economy effectively. He took time to claim that the government’s fiscal policy emphasized on the economic improvement.
“At the moment, capital flow is limited due to a high cost, preventing the economy to catch its vibrancy.” “The government prioritizes fiscal discipline,” he said adding that it had controlled the unnecessary budget transfer. According to him, the government is upcoming of achieving the target of six percent economic growth in the upcoming fiscal year.
