Finance Minister Rameshwor Khanal has stressed the need to mobilize liquidity into the productive sector to build national capital.

Addressing a program marking the 36th anniversary of the Citizen Investment Trust (CIT), Minister Khanal said that there is plenty of liquidity in the banking sector due to falling interest rates and thus pressed for channelizing liquidity into the productive sector.

Highlighting the need to accelerate the large-scale infrastructure and long-term investment projects, Khanal informed that efforts are underway to promote mega projects such as Budhi Gandaki Hydropower Project through Public- Private Partnership (PPP) model. 

He viewed that the idle capital should also be mobilized into the productive sector. 

Stating that ongoing tensions in the Middle East region could disrupt Nepal's supply chain, the minister cautioned that the disruption could lead to inflation. Hence, he called for timely actions to reduce such risks.

Finance Minister Khanal noted, "At present, both the balance of payment and current accounts are in surplus and the government revenue has increased compared to previous fiscal year."

While economic indicators are improving, he highlighted the need to ensure that investors can easily access capital.

Calling for laws on alternative financing, he viewed that the taxation on various retirement funds should be reconsidered, including lowering taxes on similar type of income and social security funds. 

On the occasion, he lauded the notable business success achieved by the CIT at a time when many state-owned enterprises were facing operational challenges.

He advocated for seeking appropriate alternatives in accordance with the government's policy guarantee to recover loans provided by the Fund to the Nepal Airlines Corporations.

Minister Khanal suggested that the CIT should be aware about risk management while considering investments. He added that it is necessary to issue long-term bonds for assets-liability management of various retirement funds.