Kathmandu, Aug 5: Finance Minister Dr Swarnim Wagle has urged commercial banks to increase lending and investment, saying closer cooperation between the government and the banking sector is essential to revive economic activity and achieve the government’s target of expanding Nepal’s economy to Rs 7.4 trillion. “Our goal is to build a Rs 7.4 trillion economy. That will require more investment and stronger credit expansion,” Wagle said, inviting bankers to identify policy hurdles that are slowing loan growth. Although banks currently have adequate liquidity, credit expansion has remained sluggish. Several CEOs noted that competition among banks to finance hydropower projects remains strong, while demand is gradually improving in agriculture, construction and other productive sectors.