MP Karki Urges Caution on BAFIA Bill, Proposes Residential Discussions with Finance Minister and Governor

Former Finance Minister and Nepali Congress lawmaker Gyanendra Bahadur Karki has cautioned against rushing the approval of the Bank and Financial Institutions Act (BAFIA) amendment bill, warning that hasty legislation may not yield positive outcomes. Speaking during the Finance Committee meeting on Thursday, Karki stressed the need to draft laws in line with international practices to ensure a stronger economy.

He emphasized that comprehensive reforms in BAFIA are necessary to revive the sluggish national economy. “The bill should be thoroughly reviewed and discussed in a residential setting with participation from the Governor and Finance Minister,” he suggested. He also highlighted the need to explore how small farmers and startups can be better supported through credit access.

Given Nepal’s agriculture-based economy, Karki urged the committee to consider strategies for boosting agricultural investment and achieving self-sufficiency in crops like rice.

He underscored the importance of maintaining public trust in the banking system. “If public confidence in banks declines, it could signal the failure of the state,” he warned. “There is liquidity in banks, yet entrepreneurs hesitate to borrow. Unless a conducive environment is created for businesses to access financing, economic growth cannot occur.”

Karki also raised concerns about difficulties faced by ordinary citizens in obtaining loans, pointing out that even borrowing under one crore rupees has become challenging due to excessive collateral demands. He urged reforms to make the banking system more accessible and citizen-friendly through the BAFIA amendment.