NCC officials meet PM Oli, urge for sustainable economic policies
KATHMANDU: A delegation from the Nepal Chamber of Commerce (NCC), led by its President Kamlesh Kumar Agrawal, recently met with the newly appointed Prime Minister KP Sharma Oli at his official residence in Baluwatar, Kathmandu.
NCC President Agrawal submitted 43-point suggestions to PM Oli aimed at stabilising policies and revitalising the economy.
During the meeting, held to congratulate Prime Minister Oli, the NCC emphasised the need for sustainable economic policies. "Over the past four years, Nepal's economy has grappled with challenges arising from the Covid 19 pandemic and the Russia-Ukraine conflict, both of which have reverberated through global supply chains and contributed to an economic slowdown," the NCC officials highlighted.
In the meeting with PM Oli, NCC President Agrawal called for effective coordination between the current fiscal year's budget and the forthcoming monetary policy. NCC officials also highlighted the imbalance between demand and supply and the private sector's struggle to attract investment despite liquidity in banks and financial institutions (BFIs), according to the statement issued by the NCC on Monday.
To address these pressing issues, the NCC proposed maintaining permanently low single-digit interest rates — a measure to promote economic growth. Additionally, they stressed the importance of facilitating loans to the private sector. The NCC also urged the immediate suspension of the Working Capital Loans Guidelines to simplify entrepreneurs' access to capital during economic downturns.
In real estate, the NCC suggested maintaining 100% risk weightage for loans exceeding Rs 5 million. They recommended adjusting the appraisal ratio in real estate lending from the current 70-30 split to an 80-20 distribution.
Rajesh Kazi Shrestha, Chairperson of the NCC Advisory Council, underscored the role of policy facilitation in driving production growth and job creation within the private sector. He emphasised the need to foster a favourable industrial and commercial environment to prevent youth migration.
In response, Prime Minister Oli assured NCC officials that entrepreneurship development and job creation remain top priorities for the present government. He expressed commitment to bolstering Nepal's economic situation through well-considered policy decisions. The head of the government encouraged NCC members to invest confidently and actively engage in commercial activities.
