May 27, 2024, Monday
Nepal 1:37:26 pm

Nepal’s economic policies not aligned

The Nepal Weekly
October 17, 2023

with donors: Minister Mahat

Finance Minister Dr Prakash Sharan Mahat has said Nepal has its own economic policies and they may differ from those of the donor agencies.     Minister Mahat upon arrival at Tribhuvan International Airport Sunday on conclusion ofattending the Annual Meetings of the World Bank Group and the International Monetary Fund, said there is no obligation for Nepal to confirm that its economic and monetary policies are in line with those of the donor agencies.     “Our economic policies and the perspectives of donors may not always be the same. The donor agencies are comfortable with Nepal’s interest to move forward with economic policies of a specific nature,” he said, adding that it is not mandatory for Nepal to implement all recommendations and conditions set forth by donor agencies. It may be noted that the private sector’s concern is that the interests of donor agencies and development partners have been dominant in the determination of Nepal’s economic policies. As they assess, the IMF exerts significant influence over the guidelines for capital expenditure loans.     

 Likewise, it engaged in discussions on the matters of investing in the poverty alleviation sector and in new fiscal investment instruments. Likewise, discussions also revolved around the World Bank (WB’s) interest in investing in the Upper Hydro Power Project.     

According to the Minister, Nepal could make a decision if it realised the need to make efforts to expedite the domestic economy.     

In response to a query about the preparations for implementing the recent announcement made by Prime Minister Pushpa Kamal Dahal ‘Prachanda’ to establish a high-level mechanism for improving the nation’s economy, the Finance Minister said the necessary decision would be taken at an appropriate time. “The existing economic issues did not emerge overnight, they have accumulated over a long period and will not be resolved instantly and through a single effort,” he pointed out.     

“The results of economic reform efforts are becoming gradually visible and the government is focused on accelerating the economy,” claimed Finance Minister Mahat.  The Finance Minister serves as an ex-officio governor of the World Bank and the Nepal Rastra Bank governor as an ex-officio governor of the IMF.  The 2023 Annual Meetings of the WB Group and IMF were held in Morocco on October 9-15 under the theme of “Global Action, Global Impact’.