FNCCI urges FinMin to help resolve economic woes

KATHMANDU, DECEMBER 6 :  The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has urged Finance Minister Janardan Sharma to do the needful to address key economic challenges. A team led by FNCCI President Shekhar Golcha met Finance Minister Sharma yesterday in the capital and made such an appeal.  and said that

 "The current financial year's monetary policy could not resolve the difficulties being faced by the country's economy. Such difficulties pertain to the dearth of revenues even to cover the recurrent expenses, the inflation rate hitting the highest in seven years, shrinking of the private sector, etc." Golchha lamented during the meeting. 

According to the FNCCI.  the fluctuations in interest rates of banks and financial institutes, lack of working capital,   and high charges of logistics and freight, among others, are inhibiting the private businesses/ industries from operating smoothly.

 The Federation also came up with various demands to resolve the existing problems.   Such demands relate to postponing the implementation of current capital guidelines 2079BS for at least two years. It is also requested to continue the initiative of reforming the system that affects the private sector in guidance for two years, maintaining the average interest rate of commercial banks between 4.4 percent and 4 percent and the average interest rate difference of development banks and finance companies at 5 percent to 4.6 percent.

 The Federation further asked for the reduction of the mandatory cash ratio by one percentage point, the adoption of liquidity management measures by transferring the funds to the government treasury, and the calculation of the amount going to the local level at 100% for a certain period.

During the meeting, Finance Minister Sharma assured the FNCCI delegation that the ministry would take the genuine  concerns in seriously and act accordingly.   He also lauded the initiatives being taken by the Federation to reduce the risks facing the economy.