Nepal Rastra Bank Begins Preparations to Implement Budget Policies: Governor Paudel

Governor of Nepal Rastra Bank, Dr. Bishwanath Paudel, announced that the central bank has already begun preparations to implement key components outlined in the government’s budget for the Fiscal Year 2082/83. Speaking at a press conference organized by the Ministry of Finance on Friday, Governor Paudel expressed full support for the budget and its implementation.

He highlighted the inclusion of legal reforms related to monetary policy as a positive aspect of the budget. Governor Paudel also welcomed the government’s plan to establish an Asset Management Company to handle non-performing loans (NPLs) and non-banking assets of financial institutions, calling it a necessary and timely step.

The upcoming budget proposes major financial sector reforms including strengthening regulatory institutions, implementing the Second Financial Sector Reform Strategy, and enhancing banking access in rural areas.

"Nepal Rastra Bank is fully supportive of the budget. We are already studying the outlined provisions and have initiated internal preparations for their implementation," Governor Paudel stated.

Key Budget Proposals Mentioned by the Central Bank:

• Establishment of a dedicated company to manage bad loans and non-banking assets of banks and financial institutions.

• Implementation of the Second Financial Sector Reform Strategy to improve governance and stability.

• Support for entrepreneurs and businesses facing hardship due to economic contraction through loan restructuring, working capital injection, and interest and penalty waivers.

• Introduction of neo banks during FY 2082/83.

• Expansion of banking services in remote areas and promotion of digital, mobile, and branchless banking.

During the same program, Vice Chairman of the National Planning Commission, Dr. Shivaraj Adhikari, emphasized the importance of effective implementation, monitoring, and evaluation of the budget. He stated that the Commission will coordinate with all ministries and agencies to ensure results-driven execution.

“We will soon begin discussions with all ministries to formulate a comprehensive implementation plan. This budget is also expected to align with the priorities of the upcoming 16th Periodic Plan,” Adhikari said.

With Nepal Rastra Bank and the National Planning Commission both signaling strong commitment, the budget for 2082/83 appears poised to bring major progress in financial reforms, digital inclusion, and institutional capacity building. The focus is now on translating policy into action through structured coordination and timely execution.