Kathmandu-  The Manila-based delegation, led by the Confederation of Banks and Financial Institutions Nepal and on a short visit to the Asian Development Bank, expressed willingness to work with CBFIN to strengthen the financial sector, facilitate access to credit to local and productive industries and promote the domestic economy through other logistical infrastructure.

In a special meeting organized by CBFIN, Manmohan Prakash, Deputy Director General of ADB Manila, who is overseeing South Asia affairs, emphasized the need for the country’s own resources to sustain the economy by providing credit, global market opportunities, exploration and new technologies, focusing on nabin and indigenous raw material products. Similarly, he said that Nepal now needs Infrastructure Financing Mechanism, Micro Entrepreneurship Development Project, SME Financing.

“Small and medium entrepreneurs should be provided unsecured loans and only they can run their business in a sustainable manner. As MSMEs create huge employment, these industries should be supported with financial access, market and infrastructure as well as skills,” he said.

Prakash emphasized on reasonable interest rate without any procedural hurdle. He said that MSMEs could only survive if they were given unsecured loans to operate effectively. Stating that women are the drivers of real change in the society, he suggested that if women could be made sustainable by promoting business through skills and easy financial access, it would be a great help to the economy.

During the meeting, Chairman Pawan Kumar Golyan requested the ADB to provide concessional loan of more than one billion dollars to Nepal during today’s economic crisis. He is of the view that the liquidity problem will be solved and banks and financial institutions will be able to provide targeted loans to the private sector. Entrepreneurs from the business sector said that if the Covid-19-laden industries were operating at full capacity, economic activities would definitely continue.

At the same time, ADB’s facilitation is needed to bring in commercial loans from international financial institutions that can be used by the country’s commercial banks, said Golian.

“Currently, Nepal’s imports have increased by more than 42 per cent, remittances are very low and BOP is also at a loss of Rs 247.3 billion. In such a difficult time, ADB’s financial support is much needed to strengthen the financial sector, promote export-oriented indigenous industries, and give MSMEs better access to credit through live channels, which will help strengthen the capacity of productive farmers for a sustainable economy, ”he said.

Senior Vice President of CBFIN Bhoj Bahadur Shah stressed on the need to create investor friendly environment. For which CBFIN is ready to work with ADB in policy dialogue, policy formulation and implementation. Pointing out the need to move ahead by overcoming various obstacles and promoting investment in the productive sector, he said that facilitation of the state was necessary.

Banks and financial institutions that invest more than the limit in the priority areas specified by the Nepal Rastra Bank for the promotion of productive industries such as SMEs / MSMEs as well as import substitution will be given 10 percent tax exemption if they contribute to building a sustainable economy.

Chairman of Kumari Bank Limited, Amir Rana, said that the government could raise huge revenue by reducing employment and imports in Nepal and the liquidity problem would be solved to some extent if the domestic production could be promoted.

Entrepreneurs including Nepal Herbal Association, National Aloe Entrepreneurs Association, Nepal Exporters Federation raised the issue of promoting high quality aloe vera, silk, herbs, textiles and other local handicraft products. However, due to lack of finance, market, infrastructure, etc., such products have not been able to increase production.

Representing more than 18,000 members, Devika Budathoki, president of the Federation of Nepali Women Entrepreneurs, appealed for financial assistance from banks and financial institutions to expand the product in the international market as Nepali women produce quality goods. Similarly, Ganesh AED, vice-president of the Nepal National Allo Entrepreneurs Association, said that there was a big problem in transportation and finance.

Thiam He Ying, ADB Manila’s director, spoke about the potential of indigenous industries and the region’s sustainable strategy for a self-reliant economy.