World Bank Assistance
Nepal and the World Bank recently signed an agreement whereby the latter has provided a loan and grant assistance of Rs.3.48 billion (US$40 million) to the Government of Nepal. The agreement was signed between the Nepalese Secretary at the Ministry of Finance, Shanta Raj Subedi and World Bank’s Country Manager for Nepal, Tasheen Sayed. The financial aid will assist Nepal in implementing the Project for Agriculture Commercialization and Trade (PACT).
The World Bank grant includes $22 million as loan assistance and funding of $18 million. Nepal will use the grant and loan assistance as additional financing to execute the PACT. The objective of the PACT is to improve the competitiveness of the farmers and the agribusiness sector in the country.
The project will help farmers engage in profitable market-oriented production and improve access to markets. The agreement comes into effect at a time when Nepal is strengthening its industry partnerships and reducing obstacles in food trade and agriculture. Although Nepal is a landlocked country in South Asia, it pursues to establish trade routes with regional neighbors including India, China and Bangladesh. The grant assistance by the World Bank will help Nepal develop its agriculture industry as it plans to extend PACT to all 75 districts to establish commercial market chains for local farm producers.