Inflation has increased due to failure to regulate supply system in the market : said Governor Adhikari

Kathmandu : Governer Mahaprasad Adhikari of Nepal Central Bank has said that since Nepal’s external sector is in a strong position, the country should be able to take advantage of it. In a program organized on the occasion of the 15th anniversary of the Nepal Economic Journalists Association (NAFIJ)’ governor officer said that Nepal has foreign exchange reserves that can cover more than one year’s imports and should benefit from it.

“Even a country with a strong economy does not have sufficient reserves for 12 months of imports and 10 and a half months of imports and services,” said the official. He claimed that there is a problem in price control because the market cannot be regulated.

Regarding the banking sector, ‘There is liquidity according to market demand. According to the financial statements of the last quarter, the non-performing loans of banks seem to have increased, but it is less compared to other countries. Inflation has increased due to not being able to regulate the supply system and market prices.

Governor Adhikari said that has to work together with the private sector and the government to finish the projects under construction as soon as possible to keep the economy running.

The official said that there is positive energy in the tourism sector and remittance sector. He also claimed that since banks invest in various sectors, there will be no crisis in the bank if there is a problem in any sector.

Chandra Prasad Dhakal, President of Federation of Nepal Chamber of Commerce and Industry, said that the economic and monetary policies were tightened due to the crisis in Sri Lanka. He said that general policy reform will not solve the current problem and that change is needed with comprehensive thinking.

He said that an environment of trust should be created to keep the market running. Many tourists have entered now. Liquidity in the bank is also increasing,” “Government should help create an environment of trust among businessmen and common people.” Dhakal said that they will also distribute relief to the earthquake victims in Karnali. He asked the businessmen to distribute relief as much as possible.

Rajesh Kumar Agarwal, President of Nepal Industry Confederation, urged the media and journalists to give priority to economic issues over political ones. President of Nepal Chamber of Commerce Rajendra Malla said that although the economy looks positive in the external sector, it is not running internally.

Malla said that although the subject of natural resource export is mentioned in the budget, there is a legal problem. He said that the trade deficit should be reduced by increasing the export of herbs and natural products by making laws quickly.