World Bank to lend fund to implement federalism
Finance Minister Dr. Yubraj Khatiwada has returned home after attending the meeting of the Word Bank with a hope that the WB would provide needed support for the effective implementation of federalism in Nepal. The government of Nepal is now in need of more international support and debt to pay the political job holders like lawmakers of the provincial assemblies and local level representatives. When the local resources are not enough to pay the large number of political job holders created in the direct interference of the westerners, the government has been expecting more grant and loan to meet the increasing administrative costs.
The World Bank Group's support will increase substantially from 2019 as its board of executive directors have discussed and endorsed the new Country Partnership Framework (CPF) for the next five years (201923), Finance Minister Yubaraj Khatiwada said after returning home last week.
“I cannot confirm the exact amount of increment, it would depend on the costing of the development needs based on the CPF, but the WBG board of executive directors has assured to double the financial assistance.”
Currently, World Bank's annual lending portfolio for Nepal is around $200 million to $300 million and total portfolio in 22 projects under the concessional loan of International Development Association (IDA) hovers at $1.7 billion.
Finance Minister Khatiwada told journalisst at TIA that said that the CPF has been developed as per the inherent needs of the country in line with the government's vision. Based on the CPF, the multilateral development partner will support not only through concessional financing via IDA but also facilitate private sector financing from International Finance Corporation (IFC), according to the finance minister.
“We can expect the support from the World Bank to double from 2019,” he said.
Stating that the country requires huge resources for execution of the fundamental rights guaranteed by the new constitution and inclusive development, Khatiwada said that he has sought support from every window of the World Bank Group.
The finance minister also urged the WBG to look into other potential areas of support for Nepal's development. Nepal has also been obtaining budgetary support from the World Bank as reward for its reform in financial sector stability and public finance management. Nepal's proposal for budgetary assistance of $100 million under energy sector reform will be submitted to the board of executive directors during their meeting in September, as per the finance minister.
Khatiwada had also addressed the ‘Nepal Day' event jointly hosted by the World Bank and the Embassy of Nepal in Washington.