KATHMANDU: The government is planning to hold an Economic Summit and Nepal Development Forum meet soon.Addressing the Asian Development Fund (ADF) meeting organised by the Asian Development Bank (ADB) in Manila, finance secretary Krishna Hari Baskota said that Nepal is preparing for both the meetings in the near future.
“The country has been fully utilising foreign aid,” he added.
The donors, however, urged all the aid recipient countries to become independent as in the long run only foreign aid will not help develop any country.The donors also asked the aid recipient countries to improve their performance and check corruption to fully utilise foreign aid. Some 30 donors — including South Korea which has become a donor from an aid recipient country — took part in the meeting, where the donors pledged to provide $12 billion to the Asian Development Fund in the next four years.
Out of the total, Japan pledged to provide 35 per cent, Australia (nine per cent), United States (six per cent), Britain (five per cent), Germany and South Korea three per cent each. But the declared amount will have to be approved by the parliaments of the respective donor countries.The European Union has, however, said it is unable to increase aid due to its own ongoing financial crisis.
Briefing the donors, Baskota said that Nepal currently has four priorities; peace, constitution, good governance and economic prosperity.
“The government has declared fiscal year 2012-13 as Nepal Investment Year and is working hard on attracting foreign investment,” he said, adding that the Investment Board has already started its homework for attracting more foreign investment and the country has created an investment friendly climate.“The government’s reforms have started showing results,” said the finance secretary, adding that the macroeconomic indicators have been encouraging in recent months.
“The country had witnessed 3.5 per cent growth in the last fiscal year but this year it is hopeful of achieving five per cent growth,” he briefed the donors. “Inflation has come down to 6.8 per cent in the first six months of the current fiscal year as compared to 9.6 per cent in the same period last fiscal year.”
He also informed the meeting about the rise in revenue mobilisation to 20 per cent from 11.5 per cent and increased inflow of remittance to 39 per cent from 12 per cent in the same period of last fiscal year. “The liquidity crunch faced by the banks last fiscal year has been solved and there is a comfortable liquidity situation in the current fiscal year,” he added.
During the visit, Baskota met the president of ADB Haruhiko Kuroda and discussed about mutual cooperation. Karudo said he was always ready to help Nepal in its developmental activities. Baskota also met the vice president of ADB Xiaoyu Zhao, who was keen on promoting the alternative energy sector in Nepal.
Source:THT
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