Kathmandu. Finance Minister Dr. KATHMANDU: Nepal Rastra Bank (NRB) should not only be a regulatory institution but also a co-builder of Nepal’s economic transformation. Finance Minister Wagle said this during a meeting with the Executive Directors of Nepal Rastra Bank on Wednesday.

During the discussion, he expressed the view that the NRB should play the role of an active partner in the economic transformation of the country along with the role of the regulatory body.

“Today’s discussion will not be limited to any formal comment. Every issue raised here will be converted into an action plan. If necessary, we will form a joint task force, institutionalize policy coordination, and make the decision-making process more efficient. “We have a rare opportunity right now. There is a political will for reform. It has become the basis of economic stability. The private sector is ready for the opportunity. Now, the institutions of the state should also move forward with the same confidence, the same clarity and the same speed. If the government, Nepal Rastra Bank, the banking sector and the private sector move in the same direction, Nepal’s economic transformation will not remain just a fantasy, it will enter the phase of implementation. ’

Finance Minister Wagle has urged the Executive Directors of Nepal Rastra Bank to give suggestions on necessary policy-level initiatives to make the economic reforms announced by the government a success.

He has expressed special concern on how the flow of credit to the production-oriented sector could be increased. “How can excess liquidity in the banking system be converted into production, industry and employment? How can a healthy relationship be built between capital market, real estate, banking system and real economy? Explain how to facilitate digital finance, fintech, alternative finance, startup financing, and new financial instruments. ’

Finance Minister Wagle stressed that the objective of regulation should not only control but also to enable productive economic activities. He said that the time has come to find out for ourselves whether Nepal’s regulatory system is stifling or encouraging innovation.

“Let’s talk about what needs to be done to make this possible, not ‘it’s not possible’. “What the country needs the most is policy confidence. ’

“If the government and Nepal Rastra Bank are confident, the banking system and the private sector too will be confident, which will help in achieving economic growth,” he said.

“On behalf of the government, we have clearly taken our responsibility. The process of reform has already begun. We are expediting necessary legal amendments, institutional reforms and implementation. “Now the same momentum, the same clarity and the same commitment are needed from the monetary side as well. ’