Monetary policy stimulates the economy: Finance Minister Dr Mahat

Finance Minister Dr Prakash Sharan Mahat has said the monetary policy for the current fiscal year will help stimulate the economy. Nepal Rastra Bank unveiled the Monetary Policy for the Fiscal Year 2023/24 on Sunday.

The flow of investment from the private sector would now increase as the monetary policy has adopted the policy of decreasing the interest rate, Finance Minister Mahat said, while addressing a press conference organized today in Butwal by Nepal Press Union Rupandehi. He added that investment would increase with the reduction in the interest rate and this would lead to an increase in employment.

Stating that the government has made a plan of fulfilling the revenue collection target in the current fiscal year, he underscored the need of awarding contracts on time in order to boost capital sector spending.

"The monetary policy has decreased the policy rate and determined it at 6.5 percent. This means the bank interest rate automatically becomes flexible and capital flow increases in the market. As a result of this, the slowed down economy will be stimulated," Finance Minister Dr Mahat said.

He reiterated that there is no situation for despondency as the government has moved forward by making development its major priority, expressing the confidence that the economic sector will take a reform trajectory once the capital expenditure is increased.

Finance Minister Mahat claimed that it was through his initiatives that the government was successful in confiscating the 100 kilos smuggled gold from Tribhuvan International Airport recently.

Stating they were successful in confiscating the smuggled gold due to the provision of awarding the informer, he asserted that investigation would be conducted down to the root of this scandal.

Finance Minister Dr Mahat, who is also the Nepali Congress spokesperson, said that the live streaming of the party's central committee meeting through Facebook has enhanced transparency and brought the facts before the public. According to him, the live broadcast of the meeting has helped clarify many misconceptions in the party.