--By TC Correspondent
In a bid to bring foreign aid under the ambit of national system and priorities, the Ministry of Finance (MoF) has prepared a new foreign aid policy which will be implemented after the formation of a new elected government. “The new foreign aid policy is ready. It has been prepared after homework of nearly a decade following consultations with all stakeholders. Now we are waiting for the new government to implement it,” said Joint Secretary Madhu Kumar Marasini, chief of the International Economic Cooperation Coordination Division under the MoF.
The new policy has some new provisions regarding foreign aid. According to the new policy, the government will not accept a foreign loan of less than USD 20 million and a grant of less than USD 5 million. However, the policy accepts technical assistances of smaller size.
“The new policy has put ceilings on foreign loans and grants,” Marasini said, “It also has the provision of mentioning all foreign assistance in the Red Book.” According to Marasini, smaller donors will have to make their contribution through a pool fund.
He added that the revised policy is aimed at boosting investments in sectors such as energy, infrastructure (highways and airports), agriculture and irrigation. “The new policy has prioritized these sectors which need huge investment,” Marasini made it clear.
He added that the new policy will make the foreign assistance regime transparent. “It’s us who should be sitting in the driver’s seat, not the donors. This, in essence, is the fundamental of the new aid policy,” Marasini shared.
The policy aims at graduating Nepal out of the group of least developed countries to the block of developing countries by 2022.
At present, there are nearly 500 projects being run through foreign assistance. The new aid policy aims at bringing down the number of such projects to 150.
There are nearly 40 international donors providing foreign assistance including loans, grants and technical assistance to Nepal at present.
