The Confederation of Nepalese Industries (CNI) has suggested the International Monetary Fund (IMF) not exert influence on Nepal's policy making.
CNI furnished such suggestions to the international financial body during a discussion held on Nepal's economy and measures to adopt for its reform. The discussion was held at CNI secretariat.
On the occasion, CNI Chairman Rajesh Kumar Agrawal urged the IMF not to impose unnecessary rulings on the government's policy and direction. Nepali economy has its own features, he said, reminding it that all principles or any practices abroad could not be replicated identically in Nepal.
According to him, only increasing the interest rate to control price hike is not a proper measure. However, import of petroleum products and other goods results in a price hike, he viewed.
In the case of normal demand of goods, interest rate does not count, but when industry is operated down at 30 percent of its capacity, it evidently impacts.
Moreover, Chairman Agrawal claimed that the country's economy was facing problems due to the policy the government adopted to increase interest rate while containing inflation and decreasing demand. Although the loan was misused to some extent for lack of oversight following the COVID-19, the regulatory body adopted the policy in haste rather than in a gradual manner, he blamed.
Moreover, Agrawal further viewed Nepal Rastra Bank's policy and direction were only favourable to banks. It was agreed between NRB and IMF on restructuring the loan for addressing liquidity, but the NRB's recent policy is against it.
In a press statement, CNI further said that even the IMF representative agreed with the NRB's recent policy.
IMF's mission chief Tidiane Kinda, Country Representative in Nepal, Teresa Daban Sanchez and others held the discussion with CNI.
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