According to the finance minister, the government is trying to create an investment friendly environment.
Talking to World Bank vice president for South Asia Isabel Guerrero and International Finance Corporation (IFC) regional vice president Karin Finkelston, at the ministry here today, finance minister Shankar Koirala said that the government is committed to attracting foreign investment in the country.
The IFC — the private sector lending arm of the World Bank Group — has been helping the country create an investment friendly environment by reducing the doing business process.
Koirala, on the occasion, also informed that the government is preparing guidelines to issue local currency bonds. IFC and Asian Development Bank have been keen on issuing local currency bonds that are expected to bridge the gap between long-term financing needs and short-term deposits in the financial sector. "It is expected to finance big infrastructure projects."
Likewise, the budget — that is under preparation for next fiscal year 2013-14 — will address foreign currency volatility mitigation measures in big infrastructure projects funded by development partners, he said, adding that the fiscal policy has also prioritised energy as it is the engine of growth for the country.
Guerrero, on the occasion, said that the World Bank will increase its investment in the energy sector in cooperation with the private sector.
The World Bank has in its draft country strategy paper also prioritised investment in energy and domestic transmission lines, apart from cross-border transmission lines. It was the largest multilateral development partner in the last fiscal year 2011-12, with a contribution of $269.60 million. The World Bank Group has been funding 42 projects and working with 17 ministries and government agencies, according to the Development Cooperation Report 2013.