Author: space4knews

24 Ashad, Kathmandu – The Confederation of Nepalese Industries (CNI) has expressed a positive and balanced appraisal of the monetary policy for the fiscal year 2083/84 released by Nepal Rastra Bank on Tuesday. The policy is expected to boost morale within the private sector amid gradual improvements in the country’s economy. According to the CNI, the monetary policy strives to balance price stability, financial system stability, and high economic growth.

The Confederation welcomes the policy’s acknowledgement of the decisive role of the private sector in achieving the government’s target of 7 percent economic growth. CNI President Anjan Shrestha emphasized that the policy adopts flexible and appropriate measures to encourage private sector investment expansion, increased production, job creation, and more dynamic economic activities. “The policy integrates various issues that the Confederation has long advocated,” Shrestha stated. “Provisions to eliminate unlimited liabilities created through personal guarantees, management of non-performing loans in sick industries, and measures for the revival of stressed loans are positive steps.”

Further, the policy’s approach to determining share collateral loan limits based on institutional capacity and facilitating credit-to-collateral ratios for large electric vehicles used in public transport are also seen favorably. However, the Confederation stressed the need for clear inclusion of restructuring and rescheduling of loans for small, medium, and large industries across various sectors in upcoming directives.

The decision to maintain the policy rate, fixed deposit rates, bank rates, cash reserve ratio, statutory liquidity ratio, and standing liquidity facility is viewed as essential for sustaining monetary stability. Such stability is expected to increase investor confidence and create a more predictable business environment.

The Confederation also welcomes policies aimed at advancing digitalization in banks and financial institutions, reducing financial costs, improving service quality, and making regulatory frameworks simpler, clearer, and more effective. Simplifying banking regulations and facilitating foreign exchange processes are anticipated to ease trade, investment, and international transactions.

President Shrestha clarified that the success of the monetary policy hinges on its effective implementation. “To achieve the 11 percent credit flow target and efficiently utilize adequate liquidity in the banking system, accessible and affordable financing must reach industries, agriculture, tourism, energy, information technology, infrastructure, export-oriented industries, and small and medium enterprises,” he said. “Without credit expansion in truly productive sectors, economic revitalization cannot gain momentum.”

The Confederation underlined the importance of parallel progress in the government’s economic reform programs, investment-friendly legal reforms, effective implementation of capital expenditure, and project pace alongside the monetary policy. It emphasized that effective coordination between monetary and financial policies is vital for achieving desired economic transformation.

The CNI reaffirmed its commitment to collaborate continuously and constructively with Nepal Rastra Bank and the government to enhance the private sector’s competitiveness, expand investment, and promote sustainable economic growth. The Confederation also highlighted that sustained dialogue between public and private sectors and policy stability will accelerate economic momentum.

Meanwhile, the Confederation urged serious consideration of private sector demands to introduce flexibility in loan classification and loss provisioning. It suggested softening watch list and blacklisting criteria for two years and advancing Financial Sector Reform 2.0. The private sector stressed the urgent need to implement the second generation financial reform program encompassing banking recapitalization, management of non-performing assets, expansion of risk-sharing mechanisms, and development of financial instruments targeted at productive sectors.

June 7, Kathmandu – The Ministry of Energy, Water Resources and Irrigation has launched an integrated digital monitoring portal to track the progress, budget utilization, and problem management of national pride irrigation projects in real time. According to the ministry, the first phase includes projects like Sikta, Rani Jamara-Kulriya, Bheri-Babai, Sun Koshi-Marin, Mahakali, and Babai irrigation projects under this digital platform. Additional irrigation projects will be gradually incorporated into this system in upcoming phases.

Minister Biraj Bhakta Shrestha introduced this system after conducting recent field inspections of Sikta, Rani Jamara-Kulriya, Bheri-Babai, and Babai irrigation projects to enhance project management effectiveness. With the portal operational, the minister and ministry secretaries can directly access up-to-date information from their offices concerning the physical and financial progress, budget expenditure, contract management, construction status, and any emerging issues related to the projects. The ministry anticipates that this will facilitate regular high-level monitoring and streamline decision-making processes.

Previously, real-time project conditions were primarily known through site visits or reports received at the end of the fiscal year. This often made timely evaluation of project progress difficult, especially for those experiencing repeated deadline extensions. The new system aims to eliminate these challenges. Under the new arrangements, each project chief is required to enter weekly updates into the portal regarding physical progress, financial status, contract implementation, claims and disputes, construction obstacles, and the steps taken to resolve them.

The ministry noted that the digital system will display issues identified in the projects with mapping, generate automated progress reports, and clearly indicate which package is delayed, the duration of the problem, and the responsible agency or individual for resolving it. Plans are underway to integrate the portal with the monitoring systems of the Prime Minister and Council of Ministers’ office as well as the National Planning Commission. This integration will enable various government bodies to base decisions on a unified set of data.

Moreover, the budget proposals for the upcoming fiscal year submitted by the ministry will be based on data obtained through this system. Budget requests will be formulated according to each project’s progress, spending capacity, and verified existing issues. During the portal’s inauguration, Minister Shrestha expressed confidence that the digital dashboard will help identify and address problems that previously remained confined to files for months despite incomplete construction work, thereby expediting the decision-making process. He also mentioned that issues requiring inter-ministerial coordination will no longer have to await the fiscal year’s end but will be identified and addressed weekly, fostering more effective problem resolution.

June 7, Kathmandu. The Labor and Employment Office has conducted a special inspection at Universal College of Medical Sciences located in Rupandehi. Based on complaints received through the ‘Hello Government’ system under the Prime Minister and Cabinet Office, the Labor Office carried out a thorough monitoring to assess the implementation of services and facilities that must be provided to workers according to the Labor Act and its regulations.

Workers had filed complaints stating that they did not receive wages on time according to their labor contributions, were denied services and benefits that must be provided within 15 days after termination of employment, and that the minimum wage set by the government was not being paid. In response to these complaints, and following directives from the Prime Minister’s Office, the Butwal branch conducted an on-site inspection of the college.

Following the inspection, the Labor and Employment Office issued a 12-point directive to the college administration. The directive mandates that all workers must be paid the government-mandated minimum wage along with a cost-of-living allowance, all workers must be compulsorily enrolled in the Social Security Fund based on their contributions, and salaries and benefits must be provided within 15 days to employees who have resigned or whose employment has ended.

The office also reminded the college that according to law, employers who employ workers in violation of the Labor Act or who fail to provide legally mandated services and benefits must pay a fine up to twice the amount deducted from workers’ wages and compensate the workers accordingly. The college was instructed to complete a labor audit and submit the report within the prescribed timeframe.

The inspection was carried out by a team led by Senior Labor Officer Manojkumar Shaini and Branch Officer Hum Pandey.

24 Ashar, Kathmandu – While ministers have been instructed not to meet with industrialists and entrepreneurs, Prime Minister Balendra Shah has begun inviting representatives of the private sector for formal discussions. Expressing deep concern about the economy, Prime Minister Shah encouraged business leaders to freely share their views. During the September 8-9 protests, attacks were also directed at the private sector. Following the vandalism and arson that damaged privately invested businesses, entrepreneurs expressed strong apprehension.

In the election held in Falgun 2082 (February/March 2026), the Rastriya Swatantra Party (Raswapa) secured a majority and formed the government. After forming the government, unfounded actions against industrialists reduced transparency and made the private sector even more wary. Due to the government’s approach that leaned more towards pressure and crackdowns rather than dialogue, business confidence had weakened. Business leaders were uncertain about how the private sector would be treated, which hindered clear decisions on increasing or decreasing investment. However, after more than three months since the government formation, the Prime Minister met privately with umbrella organizations representing the private sector in his office on Wednesday, which has generated a positive outlook within the private sector.

Previously, cabinet members were instructed to block meetings with industrialists and entrepreneurs, but the Prime Minister personally engaged with the private sector representatives, which businesspeople found encouraging. The government has set a 7 percent economic growth target for the upcoming fiscal year, making collaboration with the private sector absolutely essential. Recognizing this, the Prime Minister has, albeit belatedly, sought constructive cooperation with private enterprises. With the private sector contributing over 80 percent to the economy, the Prime Minister understands that maintaining distance from industrialists and entrepreneurs will not be a viable approach.

“The government has realized that economic improvement is impossible without trusting the private sector,” said one business leader. “The conversation with the Prime Minister has created a positive wave within the private sector.” The Prime Minister also assured entrepreneurs that there is no reason for fear regarding the clampdowns on businesspeople that had taken place following government formation. As government circulars prohibiting meetings with traders were still being issued, the Prime Minister’s direct engagement with the private sector has been seen by industrialists as an icebreaker. Ghanshyam Ojha, Director General of the Nepal Industrial Confederation, remarked that the government is maintaining a positive attitude toward the private sector.

“The Prime Minister requested the business community to understand that the government views the private sector positively,” Ojha said. “The government is clear that the private sector is a key partner in nation-building. Currently, unnecessary arrests or detentions of businesspeople will not occur, and the private sector will be treated positively — there is no need to fear.” The Prime Minister’s Office stated that the discussions aimed to strengthen and streamline the country’s economic activities, facilitate industrial and business operations, and create an investment-friendly environment. The talks focused on removing major policy and procedural barriers to boost business confidence, increase employment, and promote production growth. Prime Minister Shah emphasized the government’s recognition of the private sector as a critical partner in the nation’s economic development, investment expansion, job creation, and productivity improvement, and expressed the government’s readiness to resolve practical issues faced by entrepreneurs. He also committed to prioritizing necessary policy, legal, and administrative reforms to foster an industrial and private sector–friendly environment.