To calm down the anger of a desperate business community that is bearing the brunt of the economic downturn, the government has said it will take necessary measures to take the derailed economy back on track. On Tuesday, Prime Minister Pushpa Kamal Dahal and Finance Minister Dr. Prakash Saran Mahat have assured the private sector that the government is working on lowering interest rates and reinvigorating the investment climate in the country. Addressing the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industries (FNNCI) on Tuesday, Prime Minister Dahal said the government is committed to resolving the problems of the economy and intensive discussions have started between the government and Nepal Rastra Bank. "All the government agencies are working together and are on the same page for reducing the borrowing rates, making the market vibrant by increasing the capital expenditure, and other policy interventions," said Dahal. With businesspersons across the country gathering in Kathmandu for FNCCI AGM and to elect a new leadership, Prime Minister Dahal said the government is well aware of the private sector's expectations. Stating that the economy is moving towards recovery but not completely out of the crisis, Dahal said collaboration and cooperation between the government and the private sector are indispensable for economic recovery.

Addressing the program, Finance Minister Mahat said that time has come for the review of the measures in the monetary policy. According to Mahat, the policy to restrict imports created pressure on revenue and the surge in the interest rates worsened the investment environment. "As sectors are in recession, the central bank should now take a policy shift. "We are in internal discussions to reduce the interest rate of deposits and loans, and the spread rate," said Mahat.

Amid increasing discontent in the private sector, the government, of late, is trying to take them into confidence. On Monday, Prime Minister Dahal along with senior government officials sat down with representatives of banks and financial institutions. The government has hinted that it would lift restrictions on land plotting again to reenergize the real estate sector. The real estate business has come to a standstill across the country with the government's decision to classify land for different purposes. The government implemented land use regulations in June 2022. In the regulation, the local bodies have to classify the land into 10 types. While most of the local bodies are yet to classify the land, both Prime Minister and Finance Minister have said that they would facilitate the realty business. FNCCI President Shekhar Golchha said that the country's development is not possible without the private sector. Stating that the federation is on a mission to save the economy, Golchha said, "The economy is in trouble due to the mistakes made by all parties in the past. Now, everyone has to work together for a solution." Chandra Prasad Dhakal, Senior Vice President of FNCCI said normalcy would return to the economy within three months if the government and the central bank facilitate the private sector. Dhakal called for broader consultations amongst the stakeholders to resolve the current crisis.