KATHMANDU: The government has reiterated its pledge to address challenges within the banking sector, financial institutions, microfinance, and cooperatives in the upcoming fiscal year (FY 2024-25), as delineated in the policies and programs presented by President Ram Chandra Paudel before the Federal Parliament on Tuesday. President Paudel assured that new legal provisions would be introduced at the policy level to tackle issues affecting banks, financial institutions, and cooperatives. These initiatives aim to promote healthy competition, enhance supervision and regulation, and address concerns raised by various stakeholders.

Key measures outlined in the policies and programs include the provision of refinancing and loan restructuring facilities for microfinance borrowers and the adjustment of cooperative policies to align with contemporary needs. Additionally, cooperatives will be required to integrate with the Cooperative and Poverty-related Management Information System, while those with government ownership will be supported for integration. Furthermore, incentives will be provided to encourage savings and credit cooperatives to merge, streamlining their operations and enhancing efficiency.

The government aims to combine small capital investments to execute larger projects and plans to enlist private investment companies in the operation and management of dormant industries such as the Butwal Spinning Mills, Gorakhkali Rubber Industry, and Hetauda Garment Factory. Furthermore, policies will be formulated to ensure fair and equitable revenue distribution, with grants being allocated based on objective criteria. Integrated laws will also be developed to govern the mobilization and sharing of natural resources, investment, and profit-sharing among the three tiers of government, facilitating dispute resolution.

In a bid to stimulate economic growth, the government intends to mobilize innovative development finance instruments and create a conducive environment for domestic and foreign investment. This includes simplifying the approval process for investment through the implementation of an automated digital system and facilitating foreign loans and mixed forms of investment. Additionally, efforts will be made to enhance Nepal's country rating, providing a favorable environment for investment and economic growth.