Chandra Prasad Dhakal, President of Federation of Nepal Chamber of Commerce and Industry, has said that policy stability is necessary for the private sector to work smoothly.

Dhakal said that there is currently high liquidity in the banking system in Nepal and although the interest rate has decreased, the demand for loans from the private sector is low. He stated that the Federation has urged banks to provide flexibility to lend on their own terms, adding that excessive regulation could lead to a decline in confidence in both the banking sector and private businesses.

Chairman Dhakal informed that during the last investment conference, eight laws have been amended to increase investment and a draft of bilateral investment agreement has also been prepared.

President Dhakal urged that the fund should support the promotion of Nepal, even in the case of high foreign exchange reserves and positive balance of payments, but foreign investment could not be attracted.

During the meeting, the head of the mission, Sarwat Jahan, from IMF, said that the fund has come to support Nepal. He also said that the fund is always positive about giving importance to the private sector.