KATHMANDU, SEPTEMBER 12
Governor of Nepal Rastra Bank (NRB), Dr. Maha Prasad Adhikari (Phd), stated that the country's economy, which experienced setbacks due to the Gorkha earthquake and the COVID-19 pandemic, is slowly recovering two years after the pandemic.
Speaking at the International Conference on Economics, Finance, and Related Themes, organized Thursday by Nepal Open University and Cardiff University, UK, Governor Adhikari highlighted that the construction, industry, and trade sectors have performed well in the aftermath of these challenges.
He noted that the NRB has initiated major reforms through its monetary policies in conjunction with fiscal advancements. "The global economy is recovering slowly and unevenly from the shocks of the COVID-19 pandemic and subsequent geopolitical tensions," he added. The Governor emphasized the need for policy harmonization across interconnected global markets to mitigate the impacts of global shocks on economic activities.
In addition to financial reforms, the NRB has embarked on significant operational reforms in monetary policy aimed at enhancing its transmission effectiveness. "Recent policy reforms have focused on modernizing monetary operations, improving credit quality, promoting digital banking and FinTech, developing a modern payment system integrated into the global market, and continuing financial consolidation efforts," Governor Adhikari explained.
He emphasized that Nepal is focused on better coordination between monetary and macro-prudential policies and is working to channel credit toward productive sectors to ensure that the banking sector supports sustainable economic development while reducing the risk of asset bubbles.
The Governor reiterated that Nepal's external sector is in a relatively comfortable position, with a balance of payments and current account surplus, as well as adequate foreign exchange reserves.
Other speakers at the event, including Vice Chancellor of Nepal Open University Shilu Manandhar Bajracharya and Professor Kul Luintel of Cardiff University, shared insights on economic and fiscal matters.
The two-day conference features the participation of 60 experts from Nepal, China, the UK, Norway, Spain, and other countries, with 10 working papers set to be presented and discussed.
