Discussion between CBFin and IMF on the challenges of the economy

18 November, Kathmandu. Teresa Daban Sanchez, the Nepal representative of the International Monetary Fund (IMF) has said that not only Nepal’s economy but also the world economy is becoming complex.

In a discussion with the Confederation of Banks and Financial Institutions Nepal (CBFIN), he said that even in the United States and Europe, the internal demand and supply situation has gone awry, and inflation has remained high and interest rates have risen.

He said that to ease the current situation, all countries should be ready to handle the situation carefully through their monetary policy.

Since Nepal’s economy is located between India and China, the world’s two largest economies and markets, he suggested that Nepal should expand its investment in manufacturing, increase productivity, encourage internal use and export of original products with special features should be encouraged.

During the discussion, CBFin President Pawan Kumar Golyan remarked that Nepal’s production system and agriculture sector are weak due to excessive investments in low-productivity sectors. He said that excessive investment in low-productivity sectors is directly affecting imports.

He stressed that only policy reforms with emphasis on increasing productivity, encouraging consumption of Nepali products and investment in manufacturing as well as promoting exports of basic products will help in building a sustainable and self-reliant economy. From an import-oriented economy to an export-oriented economy.

Joseph Sylvanus, Former Chief Executive Officer, Standard Chartered Bank Nepal Limited pointed out that non-funded income of banks and financial institutions is declining and suggested that banks and financial institutions should identify their production and investment areas and move forward needed.

CBFin Senior Vice President Bhoj Bahadur Shah pointed out that mutual support and cooperation between the IMF and CBFin is essential in various areas of economic and financial sector reform and Nepal’s stability.

Rajesh Upadhyay, Vice President, CBfin, expressed his concern that issues such as service charges, interest rates, paucity of investible funds being charged by banks and financial institutions are posing challenges to banks and financial institutions, and urged the IMF representatives to Requested to cooperate in the field. Reform and upgrade the economic and banking sector of Nepal.

Source: OnlineKhabar

Himal Sanchar