The Confederation of Nepalese Industries (CNI) has submitted a set of recommendations to Nepal Rastra Bank, urging policymakers to focus on stimulating economic activity, encouraging investment, and modernizing the financial system through the upcoming monetary policy for FY 2083/84.

CNI President Birendra Raj Pandey handed over the recommendations to Governor Bishwo Nath Poudel, emphasizing the need for policies that can restore investor confidence and support economic recovery.

According to CNI, while Nepal's external sector indicators remain strong, domestic economic activities have continued to face prolonged sluggishness. The organization believes that the new monetary policy should prioritize demand creation, credit expansion, and broader economic revitalization.

Among its key recommendations, CNI proposed a gradual reduction in directed lending requirements, sector-specific implementation of working capital guidelines, modernization of the interest rate determination system, and relaxation of timelines related to collateralized loan classification and blacklisting provisions.

The industry body also suggested establishing dedicated credit facilities for startups linked to the government's enterprise support programs and forming an empowered Monetary Policy Committee within Nepal Rastra Bank to strengthen policy formulation and implementation.

Responding to the recommendations, Governor Poudel stated that the upcoming monetary policy would focus on maintaining interest rate stability and safeguarding financial sector stability. He also highlighted the private sector's critical role in driving economic growth and stressed the importance of stronger coordination between regulators and businesses.