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Sun, July 14, 2024

Nepal's economic policies need not align with perspective of donors: Minister Mahat

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KATHMANDU: Finance Minister Prakash Sharan Mahat has said Nepal has its own economic policies, which may differ from those of donor agencies.

The Minister upon his arrival at Tribhuvan International Airport (TIA) in Kathmandu today after attending the annual meetings of the World Bank Group and the International Monetary Fund (IMF), said there is no obligation for Nepal to confirm that its economic and monetary policies are in line with the donor agencies.

"Our economic policies and the perspectives of donors may not always be the same.  They, donor agencies, are okay with Nepal's interest to move on with economic policies of a specific nature," Minister Mahat said, adding that Nepal doesn't need 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 determining Nepal's economic policies. As they assess, the IMF exerts significant influence over the guidelines for capital expenditure loans.

According to the finance minister, during the meeting, Nepal highlighted the basis of its economy. Likewise, the Nepali delegation engaged in discussions on the matters of investing in the poverty alleviation sector and new fiscal investment instruments. Similarly, discussions also revolved around the World Bank's interest in investing in the Upper Hydro Power Project.

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

In response to a journalist query about the preparations for implementing the recent announcement by Prime Minister Pushpa Kamal Dahal to establish a high-level mechanism for improving the nation's economy, the finance minister said the necessary decision will be taken at an appropriate time. He said 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.

"The results of economic reform efforts are becoming gradually visible and the government is focused on accelerating the economy," he said.

Finance Minister Mahat serves as an ex-officio governor of the World Bank while Nepal Rastra Bank Governor Maha Prasad Adhikari is an ex-officio governor of IMF.

The 2023 annual meeting of the World Bank and IMF was held in Morocco from October 9 to 15 under the theme of ‘Global Action, Global Impact'.

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JUNE 2024

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