Nepal’s economic policies may not align with perspectives of donors: Minister Mahat

File Photo

Kathmandu, Oct 15: Finance Minister Dr Prakash Sharan Mahat has said Nepal has its own economic policies and they may differ from those of donor agencies.

The Minister upon arrival today at Tribhuvan International Airport after attending 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 that of 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 specific nature,” the Minister 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.

According to the Minister, during the meeting, Nepal highlighted on bases of its economy. 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 take a decision if it realised the need to take 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 ‘Prachanda’ to establish a high-level mechanism for improving the nation’s economy, the Finance Minister said the necessary decision would be taken in an appropriate time. As 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.

The Finance Minister serves as an ex-officio governor of World Bank and the Nepal Rastra Bank governor as an ex-officio governor of IMF. The 2023 Annual Meetings of the WB Group and IMF was held in Morocco on October 9-15 under the theme of “Global Action, Global Impact’.