Kathmandu, July 8
The
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has emphasised
the need for policy reforms to address the prevailing economic slowdown, risks
in the financial sector, and the large share of the informal economy.
The aim
is to revitalise the recovering economy, boost private sector confidence, and
address risks related to anti-money laundering compliance, it said in its
recommendations to Nepal Rastra Bank (NRB) for the Monetary Policy for Fiscal
Year 2025/26.
Stating
that poor governance and lack of infrastructure have hindered the effectiveness
of policy reforms, the FNCCI called for a monetary strategy targeted towards
infrastructure development.
A FNCCI delegation
led by Acting President Anjan Shrestha, submitted these suggestions to NRB
Governor Biswo Nath Poudel on Tuesday.
The
federation urged the inclusion of concrete programmes to implement the credit
restructuring and rescheduling provisions outlined in the budget for the FY
2025/26, to ensure the facility is accessible to small, medium, and large
businesses alike. It further recommended clear and effective implementation of
additional working capital provisions and interest penalties waivers.
FNCCI
also stressed the need to facilitate easy access to working capital loans for
productive sectors, tourism, construction, and housing development companies.
It recommended that banks and borrowers be given the authority to decide on
working capital loans based on nature of business.
Likewise,
citing the decline of the industrial sector’s share in GDP to 12.4 per cent, it
proposed that interest rates for industrial loans should be 1–2 per cent lower
than that for trade.
Regarding
Nepal's upcoming graduation from LDC status in 2026, FNCCI proposed
concessional financing policies to sustain the competitiveness of micro,
cottage, small, and women-led export-oriented enterprises. It also suggested
linking women entrepreneurship loans to production and managing interest
subsidies, as well as capping premium rates at 2 per cent for loans up to Rs.
50 million.
Furthermore,
FNCCI called for flexibility in the watchlist provisions, and to attract Gen Z
into entrepreneurship, it recommended facilitating business registration via
the Nagarik App and offering project loans of up to Rs. 10 million. It also
urged the implementation of FNCCI’s feasibility study in this regard.
Similarly,
it proposed concessional loans for families of migrant workers who send
remittances formally while still abroad. It recommended revising the current
targeted lending policy to prioritise productive industries, tourism, and
infrastructure, and called for the establishment of an asset management company
in response to the growing volume of non-performing assets in banks and
financial institutions.
Highlighting
the prohibition on domestic remittances via remittance companies, FNCCI noted
that this policy adversely affects low-income groups, students, informal
workers, and those without access to bank accounts or smartphones, especially
in remote areas. It recommended allowing internal transfers of up to Rs.
100,000 through remittance companies based on valid ID, equivalent to
international cash payouts.
Additional
recommendations include increasing the housing loan limit from Rs. 20 million
to Rs. 30 million, linking KYC requirements to the National Identity Card to
enable electronic access by relevant agencies, and implementing free
interoperability for QR payments.
Regarding
foreign investments, FNCCI suggested effective implementation of the budget
provision allowing Nepali businesses to open sales branches or processing
plants abroad and to invest up to 25 per cent of total exports. It also
proposed that the monetary policy clarify the provision allowing Nepali
citizens to receive sweat equity shares in return for providing technology or
specialised services to foreign companies.
Published in The Rising Nepal daily on 9 July 2025.
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