KATHMANDU: Nepal Rastra Bank Governor Biswo Nath Poudel has emphasized the need for coordinated action between monetary and fiscal policies to harness current investment opportunities and support sustainable development.

Speaking at a discussion organized by the Society of Economic Journalists Nepal (SEJON), Poudel noted that ample liquidity exists in the banking sector, with Rs 520 billion parked at the central bank, and foreign reserves remain strong.

He said this environment creates favorable conditions for investment-led growth.

Poudel stressed that the policies guiding banks and monetary operations must be aligned, adding that monetary and fiscal strategies should move in tandem.

He called for a microeconomic approach in regulating banks and financial institutions, and underscored the importance of identifying new investment sectors beyond energy.

He acknowledged that credit has not reached rural areas as intended and assured that the upcoming monetary policy will address this gap.

The policy, he said, will prioritize inclusion and promote balanced development across all sectors.