Kathmandu: The Confederation of Banks and Financial Institutions Nepal (CBFIN) has formally welcomed the budget for the upcoming fiscal year 2026/27, praising its focus on policy and structural reforms.
According to the organization, the budget’s emphasis on economic revitalization, boosting private sector morale, and promoting an investment-friendly, production-oriented economy marks a significant step forward for the nation’s financial health.
CBIFIN observed that the national economy had been in a state of stagnation, characterized by low confidence among private enterprises and a cautious “wait and see” approach from investors. With challenges such as sluggish credit expansion and the mounting pressure of non-performing loans, the organization believes this budget establishes a much-needed foundation for renewed hope and provides a clear roadmap to re-energize economic activities across all sectors.
The financial body specifically lauded the reforms within the tax system, the concessions offered to industries, and the prioritization of the digital economy, technology, and infrastructure. They highlighted the emphasis on energy development and the creation of an investment-friendly environment as timely and essential measures.
Most notably, CBFIN described the historic announcement to establish a National Asset Management Company with special mandates, designed to efficiently handle non-performing loans and non-banking assets, as a visionary and courageous move that addresses one of the most critical challenges currently facing the banking industry.
By recognizing the private sector as a primary partner and the main engine of economic growth, the budget demonstrates a clear commitment to fostering entrepreneurship and innovation. CBFIN noted that the government’s focus on expanding financial access and encouraging new investment signals a positive shift in how the state intends to collaborate with the business community to achieve national development goals.
The increase in the personal income tax exemption threshold, the comprehensive review of tax rates, and the facilitation of customs for industrial raw materials are expected to inject positive energy into the market. CBFIN expressed confidence that these measures, along with the mobilization of capital through alternative financial instruments, will lead to job creation, increased production, and a general resurgence of the private sector, steering the economy toward higher levels of self-assurance.
Looking ahead, the organization stressed that the effective and result-oriented implementation of these development-focused policies will require long-term policy stability and a centred collaboration with the private sector. CBIFIN reaffirmed its commitment to serving as an integral partner to the government, working closely to ensure financial stability, sustainable economic growth, and the ultimate goal of building a prosperous and self-reliant nation.
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