Prime Minister Pushpa Kamal Dahal on Wednesday discussed the state of the country’s economy with Deputy Prime Minister and Finance Minister Bishnu Poudel and Nepal Rastra Bank Governor Maha Prasad Adhikari.

The Prime Minister’s Secretariat said the state of the economy, the issues in the banking sector and the problems that need to be addressed immediately were discussed in the meeting at the prime minister’s official residence in Baluwatar.

The prime minister queried the finance minister and the governor on the issues and challenges in the banking sector. The prime minister emphasised reducing the interest rate and tweaking the monetary policy to address the liquidity crisis, according to his secretariat.

During the discussion, the prime minister told the finance minister and the governor that it is necessary to find ways to minimize the impact on the people created due to the economic condition, stop the flow of loans in unproductive sectors and aware the people of economic indicators.

The country is currently facing economic challenges including high inflation, liquidity crunch, reduced industrial production, depleted foreign exchange reserves and reduced growth in revenue collections.