After the developing countries, a draft has been prepared to facilitate the mobilization of concessional loans, development aid to the provinces and local levels.
The Ministry of Finance has brought a draft of the "International Development Assistance Strategy 2081" with preparations including the provision of foreign loans at a low cost even after upgrading to developing countries, facilitating the mobilization of foreign aid to state and local governments, environmental funds and green funds.
Stakeholders and experts have been requested to give their suggestions by January 15 for the draft, which has been placed on the website of the Ministry of Finance.
is currently implementing the 'International Development Assistance Strategy 2076'. While the good provisions of this strategy are not fully implemented, the Ministry of Finance has drafted a new strategy. In the draft, there is a proposal that development aid should be mobilized in the projects that are prioritized in the periodical plan and the policies and programs of the Government of Nepal, have completed pre-feasibility, are suitable from an economic, social and environmental point of view, and will also help in the development of production, employment and other sectors that contribute to economic growth. In the
draft, there is also a proposal that development aid can be mobilized in projects that can attract private sector investment, are included in the planning bank, and have completed the process according to the project readiness filter. The draft covers the issues of mobilizing facilities from all climate funds, selling carbon at competitive prices in the international market to monetize the carbon trade, and utilizing the proceeds as a source of revenue.
Finance Ministry spokesman Mahesh Bhattarai said that without major changes in the development aid strategy, it is proposed to amend the existing arrangements regarding alternative financial sources, green funds, environmental funds, state and local level aid mobilization. "In the current development aid strategy, arrangements regarding alternative financial sources and their deployment have been made in the draft," he said.
The government has also made a Bill on the Alternative Financial Sources Act. Currently, the bill is pending in the parliament. The same arrangement has been included in the new development aid policy. "The practical difficulties seen in the mobilization of development aid after federalism are going to be eased," said Bhattarai, spokesperson of the Ministry of Finance, "The policy is also focused on how concessional loans can be taken even after the upgrading of developing countries in 2026." In the
draft, more policy arrangements have been made regarding the role of state and local governments in aid mobilization.
'In the case of aid mobilized through foreign loans according to the province's demand, to pay the principal and interest of the loan in accordance with the subsidiary agreement, to implement and facilitate the development assistance program,' the draft says, 'Coordination and monitoring of the program run by international non-governmental organizations at more than one local level within the province.
To identify possible projects that require development assistance at the local level and to prepare an integrated project bank and to advance possible projects of development assistance that can be mobilized at the local level. There is a draft proposal that can be proposed to the federal ministry through the relevant subject ministry.
"In the case of aid operated through foreign loans according to the demand of the local level, pay the principal and interest of the loan according to the subsidiary agreement," it is said in the draft, "to facilitate and facilitate the implementation of the development assistance program/project, to put the program operated by the international non-governmental organization at the local level in its annual program. And its coordination and monitoring will be done by the relevant district coordination committee.' It is also mentioned in the draft that while mobilizing
aid, it will be emphasized to apply national laws and standards, and economic feasibility and high rate of return will be seen when gathering support for large projects of strategic importance.
By preparing a multi-year priority order list of projects included in the plan bank, which have been prioritized in the periodical plans of the relevant ministries and policies and programs of the Government of Nepal, have completed pre-feasibility studies, can also attract private sector investment that can contribute to the development of other sectors that contribute to economic growth, and are included in the plan bank. The draft also mentions the provision of sending a proposal to the Ministry of Finance for mobilizing development aid along with a brief concept of the project. Based on the suggestions received by January 15, the Ministry of Finance has prepared to finalize the draft and implement the policy.
