Kathmandu. The government has prepared an action plan to implement economic reforms. A committee formed by the government to implement the recommendations of the report of the High Level Economic Reform Suggestion Commission formed under the chairmanship of former Secretary Rameshwor Prasad Khanal has prepared an action plan with sectoral and ministerial responsibilities and deadlines.
The action plan has set 15 activities to be implemented in the monetary policy and interest rate as well as inflation and exchange rate. The Ministry of Finance and other thematic ministries are responsible for implementing these activities along with the Nepal Rastra Bank. The Ministry of Finance is the other thematic ministry along with the Office of the Prime Minister’s Council of Ministers.
Activities to be executed
monetary policy
- Effective implementation of the interest rate corridor for monetary management and keeping interbank interest rates close to the policy rate. Gradually reducing the band of interest rate corridors.
- Reducing interest rate fluctuations by making liquidity management more effective.
- To make foreign exchange management and regulatory arrangements consistent with the objectives of monetary policy.
- Maintain a period of 7 to 7 months to sustain imports of foreign exchange goods and services.
interest rate
- Provide a stable interest rate for loans disbursed to productive and export-oriented sectors.
- To promote productive industries and exports, loans going to the region and the first home loan taken by people with fixed incomes will be available at a fixed interest rate for a certain period of time.
- Reducing the lending and deposit interest rate gap to reduce the operation of the banking system, enhance capacity and maintain financial stability.
- Adopt an interest rate policy so that the actual interest rate on deposits is positive and the interest rate on loans remains in single high digits or low double digits.
- Developing markets to address interest rate fluctuations in the economy.
- Providing alternative finance to provide easy financial resources at low interest rates.
inflation
- Reducing government spending and indirect tax rates.
- Adopt measures to reduce production and commercial costs.
- Control black marketing and ensure smooth supply of goods and services to the market.
exchange rate
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- Keep inflation at a lower rate to prevent actual regulations from being overvalued and changing the level of the prevailing exchange rate as needed.
Study and research on exchange rate options with the Indian rupee
The deadline has been set for these activities to be carried out continuously and some six months to one year.
