The permanent governor of Nepal Rastra Bank, Neelam Dhungana Timsina, said that although the external sector of the country's economy is improving, the internal indicators are weak. He says that efforts have been made from the monetary sector to make the slack economy run.

In the context of more liquidity and low interest rates as well as strong indicators of the external sector, efforts have been made to make the economy viable from the monetary sector, Timsina said.

'It can be estimated that economic activity is improving based on the data of public finance, foreign trade and economic growth,' she said, 'Due to the relaxation in economic activity in the past, the loan recovery of banks and financial institutions has been somewhat affected. She also said that Nepal Rashtra Bank is committed to maintain macroeconomic stability through monetary, financial and foreign exchange policies. However, he says that there is still a risk that there may be more pressure on the economy due to external factors such as the US international trade and economic cooperation policy and geopolitical tensions.

'Despite high liquidity and low interest rates, there are still challenges in the economy such as the failure to improve the credit flow to the private sector and internal demand, the failure to increase capital expenditure as expected and the failure to complete the projects in operation on time,' she said, 'Inflation is within the target range, import and export trade has improved and the expansion of credit flow from the banking sector has also started to accelerate.'

Recently, various new dimensions have emerged in the world economy. On the one hand, since there is no solid basis for ending the ongoing Russia-Ukraine war, the possibility of removing the supply disruption is becoming uncertain, while the end of the ongoing conflict in the Middle East is uncertain, she said. According to Dhungana, due to such external factors, inflation, foreign aid and external sector management will be more challenging. 

Deputy Governor Bam Bahadur Mishra said that although there are some problems in the economy due to some internal and external reasons, the economy is running smoothly due to the successful implementation of the policies taken by the National Bank. He said that the inflation rate is under control, the foreign reserves are in surplus and the indices of other economies are becoming positive. 

Inflation has been decreasing lately. Foreign exchange reserves will cover more than 14 months. There is no need to despair even if there is no situation in which the credit flow may increase due to internal and external factors seen in the economy. Currently, the country has enough foreign exchange reserves for 14.4 months of imports,' he said, 'Rastra Bank's initiative is becoming effective.' In the program, former governor Chhetri said that because some financial policies are taken by the rulers for cheap popularity, it is necessary for the National Bank to control them through monetary policy. He said that it is necessary for the National Bank to crack down on the propaganda that loans are not to be paid. 

Former Governor Chhetri said that the country's financial policy was focused on populism and the benefit of some individuals and groups. He emphasized that all agencies and parties of the state should be responsible for improving the economy which is in a weak state.

He said that there are serious problems in the economy such as huge amount of money has been spent for the payment of Nepal's public debt obligations, but the capital expenditure has not increased, when the cooperative sector collapsed, its impact has also been seen in the consumer market, and production has not increased due to the lack of employment in the country.