Donors call on the govt to end political crisis, curb corruption

KATHMANDU, Dec 11: Leading aid agencies for Nepal have expressed deep concern over deepening political crisis and rising incidence of corruption in the country, stating these negativities have started eroding gains made during the ongoing reform process.



They made the statement during a meeting with Finance Minister Barsha Man Pun on Monday evening. [break]



Representatives of the World Bank, the Asian Development Bank, USAID, JICA and GIZ participated in the meeting. High-ranking officials of most of the embassies, Nepal Rastra Bank Governor Yuba Raj Khatiwada, Nepal Planning Commission Vice Chairman Dipendra Bahadur Kshetri and Finance Secretary Santa Raj Sudebi were also present in the meeting.



The collective voice of donor agencies was that the political divide, which has now taken shape of a crisis, should end immediately if the country were to embark on a path toward economic prosperity, a high-ranking official of the Ministry of Finance told Republica. They also said rising level of corruption was eating away achievements made in the past through various reform measures, the official informed.



Despite this, they lauded marginal gains made in the economic sector and urged the government to come up with a common economic agenda so that controversies do not arise later.



The idea of preparing a common economic agenda, endorsed by all political parties, was floated during the time of annual budget formation so that the government could launch programs and projects agreeable to all.



However, the country could not come up with such a document due to political wrangling and skepticism on the part of opposition parties that feared agreement on such an agenda would provide legitimacy to the incumbent caretaker government.



Minister Pun said this situation would not last for long as the government has expressed commitment to hold elections within mid-May. “I urge donor agencies to be assured about polls,” a press statement issued by the press secretary of Finance Minister Pun said.



He also said the country was in a transitional phase and urged the donor agencies to continue their support for Nepal.



“Your support is even more necessary at this moment,” he said, claiming economic indicators and foreign investment climate have improved than in the past and the government was doing its best to fight corruption. “Yes, we were not able to come up with a full budget but this won´t affect donor-funded projects as we have adequate matching fund to launch those programs.”

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