October 3: The Confederation of Nepalese Industries (CNI) has suggested the International Monetary Fund (IMF) to not exert undue influence on Nepal's policy making process.    
CNI made such suggestion to the IMF during a discussion held on Nepal's economy and measures to adopt for its reform. The discussion was held at CNI secretariat.    
On the occasion, CNI President Rajesh Kumar Agrawal urged IMF not to impose unnecessary rulings on government's policy and direction.

“Nepal’s economy has its own features,” he said, reminding that all principles or any practices abroad cannot be replicated identically in Nepal.    
According to him, increase in interest rate to control price hike is not a proper measure. He was of the view that the import of petroleum products and other goods resulted in price hike.    
Agrawal said that the interest rate doesn’t matter when the demand for goods is normal but it affects business when the industries are operating down at 30 percent of their capacity.

Moreover, CNI President Agrawal claimed that the country's economy was facing problems due to the policy the government adopted to increase the interest rate to contain inflation. Although loans were misused to some extent for lack of oversight following the COVID-19 pandemic, the regulatory body adopted the policy in haste rather than in a gradual manner, he blamed.    
Moreover, Agrawal further said Nepal Rastra Bank's policy and direction were only favourable towards banks.

“It was agreed between NRB and IMF on restructuring of loans for addressing the liquidity problem, but the NRB's recent policy is against it.”    
IMF's mission chief Tidiane Kinda, Country Representative in Nepal, Teresa Daban Sanchez and others held the discussion with CNI. -- RSS