By Our Reporter  All has not been well with Nepal’s economy since the beginning of this fiscal year. It has been in an alarming situation with growing negative macroeconomic indicators. Moreover, the post-monsoon rains that caused massive damages to paddy across the country further worsened the situation. The rains were reported to have caused a loss of paddy worth Rs. 10 billion. The current account, balance of payments and foreign currency reserve have been affected as the flow of remittance has shrunk significantly and import of luxurious items has increased. Banks are facing liquidity crunches. Economists said that the declining flow of remittances will adversely affect the country's remittance-based economy. They argue that remittance has become a pillar of the economy, supporting the national economy to import goods, reduce poverty and manage liquidity in the banking sector. They have suggested that the government should focus on making remittance flow sustainable until and unless the country's economy becomes stronger on its own. The negative impact on reference economic indicators -- the current account, the balance of payment, and foreign currency reserve -- has also been seen with the reduction in the flow of remittances. Even liquidity problem has, of late, been seen in the banking sector. Considering the growing liquidity problems in banks, Governor of the Nepal Rastra Bank, Maha Prasad Adhikari on Tuesday suggested the banks and financial institutions (BFIs) look for profits in the long-term rather than immediate unusual profits. Reminding their mediatory role at the annual function of the Nepal Bankers' Association (NBA), he said that the BFIs must not charge exorbitant fees for their services. According to him, while the NRB was working to discourage the unhealthy competition in the banking and financial sector, the lack of field supervision during the COVID-19 pandemic has resulted in the violation of discipline in some BFIs. Governor Adhikari also directed the BFIs to restrain themselves from aggressive credit mobilisation and invest in the sectors that support economic growth. The growth of the banking sector should match the growth in the economy. Interest rate stability helps in the economic growth, he said. Due to the high demand for loans in the aftermath of the COVID-19 pandemic and BFIs' aggressive credit mobilisation, the financial system is facing a liquidity crisis. Meanwhile, loan recovery is also delayed due to the extension of the repayment date by six months to support the rehabilitation of the businesses affected by the pandemic.