World Bank supports Nepal’s Clean Air and Prosperity Project to reduce air pollution from industries

The World Bank’s Board of Executive Directors has approved a $52 million credit for the Nepal Clean Air and Prosperity Project to reduce air pollution and strengthen air quality management, according to a press note issued by the multilateral lending institution.
The project will help reduce fine particulate matter (PM2.5) emissions, particularly from industrial and commercial boilers and furnaces, while strengthening national systems for air quality management. It will focus on the Kathmandu Valley, the Terai, and surrounding foothill regions where air pollution poses severe risks.
"Air pollution is not only a public health crisis but also a significant economic burden in Nepal, costing the country more than six percent of GDP each year through health costs and lost labor productivity,” said Division Director for Maldives, Nepal and Sri Lanka David Sislen. "This project aims to protect millions of people from harmful pollution by helping Nepali enterprises adopt cleaner and more efficient technologies that at the same time also lower operating costs, improve competitiveness, and support sustainable industrial growth."
Industrial emissions are projected to become the largest source of air pollution in the coming years as the country continues to industrialise, underscoring the urgency of cleaner production technologies. Through a combination of clean technology financing, incentives, and technical assistance, the project will support around 400 industrial and commercial enterprises to adopt electric boilers/furnaces, modern biomass boilers/furnaces, or advanced emission control technologies, leading to substantial air quality improvements.
"The adoption of clean technology is limited in Nepal due to a combination of high upfront investment costs, constrained access to long-term financing, and low technical capacity among enterprises,” said World Bank Senior Environmental Economist, South Asia Region Martin Heger. "This project addresses these barriers by pairing long tenor financing and targeted capital incentives with hands-on technical assistance, helping industries to transition to cleaner production."
The project will be implemented by the Department of Industry under the Ministry of Industry, Commerce and Supplies and the Department of Environment under the Ministry of Forests and Environment. Rastriya Banijya Bank will serve as the handling bank for the clean technology financing facility.
The project financing from the World Bank is complemented by a $5 million grant from the World Bank’s Resilient Asia Program, funded by the United Kingdom’s Foreign, Commonwealth and Development Office and Swiss Agency for Development and Cooperation. The project is part of the World Bank’s Regional Air Quality Management Program in the Indo-Gangetic Plains and Himalayan Foothills (IGP-HF), a global air pollution hotspot.

ADB supports Nepal’s digital transformation toward high‑impact services

The Asian Development Bank (ADB) has approved a $40 million concessional loan to help Nepal accelerate its digital transformation agenda and expand access to high‑impact digital services for citizens and businesses.
The Nepal Digital Transformation Project - the first in South Asia to be co-financed under the ADB–World Bank Full Mutual Reliance Framework (FMRF) - will strengthen the country’s data hosting and cybersecurity infrastructure to enhance government-wide digital security and resilience, along with core digital public infrastructure for modern, user‑centric services, according to a press note issued by the ADB. "It will support key initiatives such as developing an integrated citizen service portal, improving the national social registry, establishing a secure government-wide data exchange platform for safe and efficient information sharing, and digitalizing about 11 high‑impact government services, according to a press release issued by the multilateral lender."
“Digital transformation is no longer optional - it is critical for improving public service delivery and supporting Nepal’s economic development,” said ADB Country Director for Nepal Arnaud Cauchois. “The reforms supported by ADB and the World Bank will make key services easier to access, reduce waiting times and administrative barriers, and enhance transparency in government processes - helping build greater trust between citizens and public institutions.
The project will be implemented by Ministry of Communications and Information Technology. It aligns with Nepal’s Digital Nepal Framework 2.0, Sixteenth National Plan, e‑Governance Blueprint, and ADB’s country partnership strategy for Nepal, 2025–2029, which identifies digital transformation as a core crosscutting priority, the press note reads.
The FMRF is an innovative co-financing arrangement between ADB and the World Bank designed to streamline project preparation, reduce duplication, and deliver faster and more effective development support. The World Bank is the lead lender for the Nepal Digital Transformation Project, approving its $50 million concessional loan in February this year.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members - 50 from the region.

Mobile-Phone Technology powers saving Surge in developing economies

More adults than ever in low- and middle-income countries now have bank or other financial accounts, leading to a rise in formal saving, according to the World Bank Group’s Global Findex 2025 report. This momentum in financial inclusion is creating new economic opportunities.  Mobile-phone technology played a key role in the surge, with 10 per cent of adults in developing economies using a mobile-money account to save, a 5-percentage point increase from 2021.

In 2024, some 40 per cent of adults in developing economies saved in a financial account in 2024, a 16-percentage-point increase since 2021 and the fastest rise in more than a decade. Higher personal saving, through banks or other formal institutions, fuels national financial systems, making more funds available for investment, innovation, and economic growth. In Sub-Saharan Africa, formal savings increased by 12-percentage points to 35 per cent of adults.

“Financial inclusion has the potential to improve lives and transform entire economies,” said World Bank Group President Ajay Banga. “Digital finance can convert this potential into reality, but several ingredients need to be in place. At the World Bank Group, we’re working on all of them. We’re helping countries get their people access to new or improved digital IDs. We’re constructing social protection programs with digital cash-transfer systems that deliver resources directly to those in need. We’re modernizing payment systems and helping to remove regulatory roadblocks—so that people and businesses have the financing they need to innovate and create jobs.”

Bill Gates, Chair of the Gates Foundation, one of the supporters of the Global Findex, on the occasion, said, “More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress. The case for investing in inclusive financial systems, digital public infrastructure, and connectivity is clear—it’s a proven path to unlocking opportunity for everyone.”

The Global Findex is the definitive source of data on global access to financial services, from payments to saving and borrowing. It highlights a major milestone in financial inclusion: nearly 80 per cent of adults worldwide now have a financial account, up from 50 per cent in 2011. But 1.3 billion adults still lack access to financial services. Mobile phones could help close this gap: about 900 million adults without financial accounts have a mobile phone, including 530 million with smartphones.

Investment in systems that enable instant money transfers, such as UPI in India or PIX in Brazil, could help expand financial usage. So could stronger consumer-protection frameworks and efforts to make phones and accounts more secure.

The Findex data also show that digital financial services are helping narrow the gender gap in account ownership: globally, 77 per cent of women have accounts compared with 81 per cent of men. In low- and middle-income countries, women’s account ownership nearly doubled, from 37 per cent in 2011 to 73 per cent in 2024.

For the first time, the report includes data on personal mobile-phone ownership and internet use.  Globally, 86 per cent of adults owned a mobile phone, including 68 per cent of adults with a smartphone, according to the Global Findex Digital Connectivity Tracker 2025 shows. The rising use of mobile phones for digital transactions, however, comes with new risks. Of the 4 billion adults in low- and middle-income economies who own a mobile phone, only around half use a password to protect their phone.

Across all developing countries, more adults are also using mobile phones or cards to pay merchants. In 2024, some 42 per cent of adults in low- and middle-income countries made an in-store or online digital merchant payment, up from 35 per cent in 2021. Three-quarters of adults, who receive government payments, and half of wage earners, receive their money into an account, a practice that helps reduce theft and ensure that money goes to the right person.

Regional Highlights

East Asia and Pacific: The region leads the world in digital connectivity and use of financial services: 86 per cent of adults have a smartphone and 83 per cent of adults have a financial account.

Europe and Central Asia: The region has the highest internet usage and social media engagement rates among developing economies. Mobile-phone ownership rates top 94  per cent.

Latin America and the Caribbean: About 70 per cent of adults have an account, and over half use their account digitally using a card or phone.

Middle East and North Africa: Account ownership rose to 53 per cent from 45 per cent in 2021. In 2024, some 17 per cent of adults save formally, up from 11 per cent in 2021.

South Asia: Nearly 80 per cent of adults own an account, although the high rate is driven by India, where 90 per cent of both men and women have an account and 65 per cent own a mobile phone.

Sub-Saharan Africa: Account ownership in Sub-Saharan Africa grew to 58 per cent of adults, up from 49 per cent in 2021. Use of mobile money accounts is at the highest levels in the world.

World Bank Group's new Country Partnership Framework prioritises jobs and resilience

The World Bank’s Board of Executive Directors discussed the new 7-year Country Partnership Framework (CPF) for Nepal on May 29, 2025. The CPF focuses on the fundamentals of job creation and building resilience to natural disasters, including those linked to climate change.

“Creating jobs is not just at the heart of our mission, it is also the lifeline that can drive Nepal’s sustainable and resilient growth,” said World Bank Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “The CPF builds on more than 60 years of partnership between the World Bank Group and Nepal and will leverage development partner collaboration and private sector solutions to drive growth, job creation, and investments.”

Under the CPF, the World Bank Group aims to make available about $2.7 billion to achieve the CPF’s outcomes of helping create more and better jobs, strengthening connectivity and access to services, and enhancing resilience to natural disasters and climate risks.

In the immediate term, the World Bank Group will prioritize policy reform for growth, tourism, digital connectivity, and integrated urban development as engines of growth and job creation.

This will include creating a more investment-friendly environment with reforms that enable private sector-driven growth and investment; enhancing digital connectivity and access to digital government services for better productivity, governance, and service delivery; and improving the competitiveness and services of urban centers like the Kathmandu Valley and secondary cities to unlock their potential as tourist and investment destinations.

“We support Nepal in creating more and better jobs, bolstering disaster preparedness, and contributing to a sustainable future by mobilising domestic and international private capital, promoting public-private partnerships, and enhancing institutional capacity,” said regional director for South Asia at IFC Imad N Fakhoury. "The World Bank Group’s Country Partnership Framework will guide our efforts in advancing reforms that will unlock private sector investment and strengthen the business environment to make a meaningful difference in the lives of the people of Nepal."

As a cross-cutting priority, the World Bank Group will help strengthen the accountability and effectiveness of public sector institutions to improve the public sector’s capacity to deliver results for Nepal and its people.

“MIGA is committed to supporting Nepal’s development goals by providing political risk insurance and leveraging other guarantee instruments through the World Bank Group Guarantee Platform,” said director for Economics and Sustainability of MIGA Sebnem Erol Madan. “By mitigating investment risks, MIGA aims to attract private sector investments that are crucial for creating jobs and strengthening economic resilience," Madan said, adding that through the partnership with the World Bank and IFC under the new Country Partnership Framework, they aim to support Nepal to harness its assets and build a more sustainable and prosperous future.

The CPF is informed by a comprehensive analytical and evaluation program, broad-based consultations with stakeholders across all seven provinces, and the government's 16th Plan, which lays out its national development priorities.

World Bank approves $257 million to improve electricity and irrigation services

The World Bank’s Board of Executive Directors approved two projects for Nepal on May 29 totaling $257 million aimed at enhancing electricity distribution services and improving irrigation services to boost agricultural productivity.

The Electricity Supply Reliability Improvement Project ($120 million) will strengthen the electricity distribution network and enhance electricity supply to users in Koshi, Bagmati, Karnali, and Sudurpashchim provinces. The project, led by Nepal Electricity Authority (NEA), will focus on constructing new distribution substations, upgrading existing networks, and implementing an automated system for real-time monitoring of distribution networks to enhance operational efficiency, a press note issued by the multilateral lending institution reads.

The Modernisation of Rani Jamara Kulariya Irrigation Project - Phase 3 ($137 million) aims to improve irrigation services and agricultural productivity by expanding access to year-round irrigation services, increasing farm productivity, and enhancing climate resilience in Kailali district, Sudurpaschim Province, it reads, adding "Jointly implemented by Department of Water Resources and Irrigation and Department of Agriculture, this project will scale year-round irrigation to an additional 17,500 hectares benefiting 160,000 people."

“An uninterrupted electricity supply and adequate, year-round irrigation services are fundamental inputs for Nepal’s sustainable development,” said Country Division Director for Maldives, Nepal, and Sri Lanka David Sislen. “The projects emphasise improved connectivity and the promotion of clean electricity generated from hydropower, alongside integrated agricultural support services to farmers to help build resilience against climate and disaster risks.”

The projects also include capacity-building initiatives for the Nepal Electricity Authority and the Water Users Association to promote innovative solutions and strengthen institutional systems for the effective management and sustainability of infrastructure.

World Bank downgrades Nepal growth forecast to 4.5 per cent

The World Bank (WB) has downgraded the growth fore cast to 4.5 per cent in the fiscal year 2024-25, due to damage from floods and landslides, and to 5.2 per cent in the fiscal year 2025-26, as a result of persistent weakness in the financial system.

Amid increasing uncertainty in the global economy, South Asia’s growth prospects have weakened, with projections downgraded in most countries in the region, not only Nepal. Stepping up domestic revenue mobilization could help the region strengthen fragile fiscal positions and increase resilience against future shocks, says the World Bank in its twice-yearly regional outlook.

Likewise, Afghanistan economy is estimated to have grown by 2.5 per cent in the fiscal year 2024-25, slower than the pace of population growth and growth is forecast to increase only moderately to 2.2 per cent in 2025-26, whereas Bangladesh growth is expected to slow in the fiscal year 2024-25 to 3.3 per cent amid political uncertainty and persistent financial challenges, and the growth rebound in the fiscal year 2025-26 has been also downgraded to 4.9 per cent.

The World Bank has also downgraded the growth forecast of Bhutan to 6.6 per cent due to weak agriculture sector growth but upgraded in the next fiscal year to pick to 7.6 per cent due to expected strength in hydropower construction. 

Indian growth story is also expected to slow from 6.5 per cent to 6.3 per cent as in the next fiscal year, as the benefits to private investment from monetary easing and regulatory streamlining are expected to be offset by global economic weakness and policy uncertainty, whereas the completion of a new airport terminal in Maldives will contribute to 5.7 per cent growth in 2025, although challenges in meeting external debt obligations continue to pose a downside risk, according to the World Bank.

In Pakistan, the economy continues to recover from a combination of natural disasters, external pressures, and inflation, and is expected grow by 2.7 per cent in the fiscal year 2024-25 and 3.1 per cent in the next fiscal year.

The Sri Lankan government has made further progress with debt restructuring, and a projected rebound in investment and external demand is expected to lift growth in 2025 to 3.5 per cent before it returns to 3.1 per cent in 2026.

Released today, the latest South Asia Development Update, Taxing Times, projects regional growth to slow to 5.8 per cent in 2025—0.4 percentage points below October projections—before ticking up to 6.1 per cent in 2026. This outlook is subject to heightened risks, including from a highly uncertain global landscape, combined with domestic vulnerabilities including constrained fiscal space.

“Multiple shocks over the past decade have left South Asian countries with limited buffers to withstand an increasingly challenging global environment,” said World Bank Vice President for South Asia Martin Raiser. “The region needs targeted reforms to address vulnerabilities such as fragile fiscal positions, backward agricultural sectors, and the impact of climate related shocks.”

Although tax rates in South Asia are often above the average in developing economies, most tax revenues are lower. On average during 2019–23, government revenues in South Asia totaled 18 percent of GDP—below the 24 percent of GDP average for other developing economies. Revenue shortfalls are particularly pronounced for consumption taxes but are also sizable for corporate and personal income taxes.

Tax revenues in South Asia are estimated to be 1 to 7 percentage points of GDP below their potential, based on existing tax rates, the report reads, adding that some of this shortfall is explained by the widespread informality and large agricultural sectors in the region. "However, even after taking this into account, sizable tax gaps remain, highlighting the need for improved tax policy and administration."

“Low revenues are at the root of South Asia’s fiscal fragility and could threaten macroeconomic stability, especially in times of elevated uncertainty,” said World Bank Chief Economist for South Asia Franziska Ohnsorge. “South Asian tax rates are relatively high, but collection is weak, leaving those who pay taxes with high burdens and governments with insufficient funds to improve basic services.”

The report recommends a range of policies to improve tax revenues by eliminating loopholes, streamlining tax codes, tightening enforcement, and facilitating tax compliance. This includes paring back tax exemptions; simplifying and unifying the tax regime to reduce incentives to operate in the informal sector; and using digital technology to identify taxpayers and facilitate collection. The report notes the potential of adopting pollution pricing, which could help address the high levels of air and water pollution while raising government revenues.

World Bank approves $150 million to improve resilience of bridge network, connectivity and access to services

The World Bank’s Board of Executive Directors today approved a financing package of $150 million for Nepal’s Third Bridges Improvement and Maintenance Programme (BIMP-III) to strengthen the resilience of bridges in the Strategic Road Network, ensuring safer and uninterrupted connectivity across the country’s diverse and challenging terrain.

Nepal's bridge system serves as critical lifelines connecting remote and urban communities to essential services, including healthcare, education, and economic opportunities. Vulnerabilities caused by frequent climate-induced disasters such as floods, landslides, and earthquakes severely affect the bridge infrastructure.

The programme, led by Department of Roads, will focus on climate-resilient measures such as enhanced structural designs and innovative technologies, including real-time monitoring systems to safeguard bridges against extreme weather events. The programme will also support bridge designs prioritising accessibility for all users, connecting marginalized communities to vital services.

“The resilience of Nepal’s bridge network is fundamental for safe and sustained connectivity,” said Division Country Director for Maldives, Nepal, and Sri Lanka David Sislen. “This programme emphasizes resilient infrastructure development and promoting access to markets and services for vulnerable communities while promoting Nepal’s sustainable growth.”

The programme includes capacity-building initiatives for the Department of Roads, promoting innovative solutions and strengthening institutional systems for effective infrastructure management.

World Bank outlines four key reforms to boost growth, create jobs

Nepal has achieved remarkable success in poverty reduction, nearly eradicating extreme poverty, largely driven by remittances. To strengthen future growth, Nepal should prioritise policy actions that unlock domestic opportunities, according to the World Bank’s Nepal Country Economic Memorandum: Unlocking Nepal’s Growth Potential, released today.

Despite progress, Nepal’s economic growth lags regional peers, it reads, adding that Nepal's economy grew at an average annual real rate of just 4.2 per cent between 1996 and 2023, ranking sixth out of eight South Asian nations. Structural challenges such as low productivity, declining exports, and a stagnant industrial sector have held back the economy and led to slow job creation in non-agriculture sectors. Young workers are migrating abroad in search of better job opportunities as domestic prospects remain limited.

“Nepal's success in poverty reduction is impressive, but its economic potential remains largely untapped,” said World Bank Division Country Director for Maldives, Nepal, and Sri Lanka David Sislen. “Nepal has significant potential to drive stronger growth and create jobs by implementing key reforms to increase the returns from migration, boost exports, use hydropower efficiently, and boost digitalisation.”

“The 16th Plan for Nepal outlines a vision of good governance, social justice, and prosperity and prioritizes productivity and competitiveness, decent and productive jobs, social security, and ensuring a smooth transition from LDC status,"  vice chair of the National Planning Commission (NPC) Prof Dr Shiva Raj Adhikari said, adding that the government is committed to ensuring an enabling policy environment for Nepal’s sustainable growth.

The Nepal Country Economic Memorandum produced every five years, offers a roadmap for faster growth in key sectors. It recommends policy actions in four critical areas to unlock Nepal's economic potential.

Getting more out of migration: A systematic and institutionalised migration system can enhance the returns from migration. Integrating migration into national development, job creation, and poverty reduction strategies will provide a platform to work towards such a system. Policies should focus on reducing the cost and increasing the benefits and safety for current low-skilled migrants, while also eyeing longer-term skill and destination diversification. Expanding and better implementing bilateral labor agreements will be critical. Initiatives promoting entrepreneurship and retraining and reskilling programmes would allow returning migrants to reintegrate into the domestic labour market.

Improving export performance: Improving market competition in key sectors and addressing infrastructure deficits can boost exports. Better managing inflationary pressures would address the erosion of exporters’ price competitiveness. Encouraging people to use remittances for investments and business growth could help ease inflation. Simplifying the process for businesses to get tax refunds on imported materials and lowering import taxes would make it easier for them to export more products. With Nepal’s transition from Least Developed Countries (LDCs) status and the loss of trade preferences, authorities should seek additional preferential trade agreements. 

Harnessing the potential of hydropower: Developing a clear financing strategy to develop the hydropower sector will help mobilise much-needed investments. This strategy could include developing the domestic bond market and an effective framework for large-scale public-private partnerships. Strengthening the regulatory and legal frameworks, by reducing bureaucratic red tape and streamlining the current licensing process, would improve the structure of the electricity market and attract additional investment.

Boosting the digital sector: Updating the Telecommunications Act and the digital strategy and adopting key digital infrastructure faster would boost the development of the digital sector. Low digital skills, one of the key roadblocks in the sector, need to be addressed by integrating these skills in school curricula and through training programmes for different age groups and demographics.

नेपालको आर्थिक वृद्धि र रोजगारी सिर्जनाका लागि विश्व बैंकको चार सुझाव

नेपालले चरम गरिबी लगभग निवारण गरेर गरिबी न्यूनीकरणमा उल्लेखनीय सफलता हासिल गरेको छ, यसमा मूलतः विप्रेषण (रेमिट्यान्स) को ठूलो भूमिका रहेको विश्व बैंकले जनाएको छ। सोमबार सार्वजनिक गरिएको विश्व बैंकको नेपाल राष्ट्रगत आर्थिक परिदृश्यः नेपालमा आर्थिक वृद्धिको सम्भावना उजागर  प्रतिवेदनका अनुसार, भविष्यमा सुदृढ आर्थिक वृद्धि हासिल गर्न नेपालले आन्तरिक अवसरहरूलाई खुल्ला गर्ने नीतिगत कदमहरूलाई प्राथमिकता दिनुपर्छ ।

प्रगतिका बाबजुद नेपालको आर्थिक वृद्धि क्षेत्रीय समकक्षी राष्ट्रहरूको तुलनामा निकै पछाडि छ । सन् १९९६ देखि सन् २०२३ को अवधिमा नेपालको अर्थतन्त्र वार्षिक औसत ४।२ प्रतिशतले मात्र वृद्धि भयो, जुन दक्षिण एसियाका आठ राष्ट्रहरूमध्ये छैटौँ स्थानमा पर्दछ । निर्यातमा गिरावट, औद्योगिक क्षेत्रको गतिहीनता र न्यून उत्पादकत्व जस्ता संरचनागत चुनौतीहरूले नेपालको अर्थतन्त्रलाई पछाडि धकेल्नुका साथै गैर–कृषि क्षेत्रमा रोजगारी सिर्जना सुस्त भएको छ । आन्तरिक रोजगारी अवसर सीमित हुँदा युवा श्रमिकहरू वैदेशिक रोजगारीमा जान बाध्य छन् ।

“गरिबी न्यूनीकरणमा नेपालको सफलता उल्लेखनीय छ, तर मुलुकको आर्थिक सम्भावना अझै पूर्ण रूपमा उपयोग हुन सकेको छैन,” मल्दिभ्स, नेपाल र श्रीलंकाका लागि विश्व बैंकका विभागीय राष्ट्रिय निर्देशक डेभिड सिस्लेनले भने, “नेपालसँग आप्रवासनको प्रतिफल वृद्धि गर्ने, निर्यात बढाउने, जलविद्युतको कुशलतापूर्ण उपयोग गर्ने, र डिजिटलीकरणलाई प्रवर्द्धन गर्नेजस्ता सुधारमार्फत मजबुत आर्थिक वृद्धि हासिल गर्नसक्ने प्रशस्त सम्भावना छ ।”

“नेपाल सरकारको १६औं योजनाले सुशासन, सामाजिक न्याय र समृद्धिको दृष्टिकोण प्रस्तुत गरेको छ र यसले उत्पादकत्व र प्रतिस्पर्धी क्षमता विकास, मर्यादित तथा फलदायी रोजगारी, सामाजिक सुरक्षा, तथा अल्पविकसित राष्ट्रबाट सहज स्तरोन्नति सुनिश्चित गर्ने प्राथमिकता राखेको छ । नेपाल सरकार दिगो आर्थिक वृद्धिका लागि अनुकूल नीतिगत वातावरण सुनिश्चित गर्न प्रतिवद्ध छ,” राष्ट्रिय योजना आयोगका उपाध्यक्ष प्रा डा शिवराज अधिकारीले भने।

हरेक पाँच वर्षमा तयार गरिने नेपालः राष्ट्रगत आर्थिक परिदृश्यले प्रमुख क्षेत्रमा तीव्र आर्थिक वृद्धिको मार्गचित्र प्रदान गर्दछ । यसले नेपालको आर्थिक सम्भावनालाई उजागर गर्न चार प्रमुख क्षेत्रहरूमा नीतिगत सुधारको सिफारिस गरेको छ ।

आप्रवासनबाट थप लाभ उठाउनेः व्यवस्थित र समावेशी रूपमा संस्थागत प्रवासन प्रणालीले आप्रवासनबाट थप लाभ हासिल गर्न मद्दत गर्छ । राष्ट्रिय विकास, रोजगारी सिर्जना र गरिबी न्यूनीकरण रणनीतिहरूसँग आप्रवासनलाई एकीकृत गर्दा यस प्रकारको प्रणालीतर्फ काम गर्ने मञ्च ९प्लेटफर्म० प्रदान गर्दछ । नीतिहरू दीर्घकालीन सीप विकास र श्रम गन्तव्य विविधिकरणलाई ध्यानमा राख्दै सीपयुक्त श्रमिकहरूको प्रवासन लागत घटाउने र लाभ एवं सुरक्षा बढाउनेतर्फ केन्द्रित हुनुपर्छ । थप द्विपक्षीय सम्झौताहरू गर्ने र तिनीहरूको प्रभावकारी कार्यान्वयन महत्वपूर्ण हुनेछन् । विदेशबाट फर्कने श्रमिकहरूलाई आन्तरिक श्रम बजारमा पुनःसमायोजन गर्न उद्यमशीलता प्रवर्द्धन, पुर्नतालिम, तथा पुनःसीप विकास कार्यक्रमहरू लागू गर्नुपर्छ ।

निर्यात क्षमतामा सुधारः मुख्य क्षेत्रहरूमा बजार प्रतिस्पर्धा सुधार तथा पूर्वाधारको न्यूनतालाई सम्बोधन गरेर निर्यात बढाउन सकिन्छ । मुद्रास्फीतिको दबाबलाई राम्रोसँग व्यवस्थापन गर्दा निर्यातकर्ताको मूल्य प्रतिस्पर्धात्मकतालाई सम्बोधन गर्दछ । विप्रेषणलाई लगानी र व्यवसाय वृद्धिका लागि उपयोग गर्न मानिसहरूलाई प्रोत्साहीत गरेको खण्डमा मुद्रास्फिती बढ्ने क्रम सुस्त हुन्छ । व्यवसायले आयातीत वस्तुमा कर फिर्ता प्राप्तिको प्रणाली सरलीकरण र आयात कर कटौतीले निर्यातकर्तालाई थप निर्यातका लागि सहज बनाउँछ । साथै, नेपालले अल्पविकसित राष्ट्रको रूपमा प्राप्त गर्ने व्यापार सुविधा कटौती हुने अवस्थालाई मध्यनजर गर्दै अधिकारीहरूले थप सुविधायुक्त व्यापार सम्झौताहरू खोज्नुपर्छ ।

जलविद्युतको सम्भावना उपयोगः जलविद्युत् विकासका लागि स्पष्ट वित्तीय रणनीति निर्माण गरी आवश्यक लगानी आकर्षित गर्न सकिन्छ । यस रणनीति अन्तर्गत स्थानीय बचतपत्र (बण्ड) बजारको विकास तथा ठूला सार्वजनिक–निजी साझेदारी ९पीपीपी०का ठूला परियोजनाहरूका लागि प्रभावकारी ढाँचा निर्माण आवश्यक छ । साथै, प्रशासनिक झन्झट घटाएर र इजाजत ९लाइसेन्स० प्रक्रियालाई सरलीकरण गर्नुका साथै नियमन तथा कानुनी संरचनालाई सशक्तीकरण गर्नुपर्छ ।  यसले नेपालको विद्युत बजार संरचना सुधार गर्नेछ र थप लगानी आकर्षित गर्नेछ ।

डिजिटल क्षेत्रको प्रवर्द्धनः नेपालको डिजिटल क्षेत्रमा तीव्र सुधार ल्याउन दूरसञ्चार ऐन परिमार्जन गर्नुका साथै डिजिटल रणनीति अबलम्बन र डिजिटल पूर्वाधारको विकासले यस क्षेत्रको विकासलाई विस्तार गर्नेछ । नेपालमा कम डिजिटल सीप एउटा प्रमुख चुनौतीका रूपमा रहेकाले विद्यालय पाठ्यक्रममा डिजिटल सीप समावेश गर्नुका साथै विभिन्न उमेर समूहका लागि र जनसांख्यिक विशेषताका आधारमा तालिम कार्यक्रम सञ्चालन गर्नुपर्छ ।

World Bank approves $100 million to support policy framework for GRID and Growth

The World Bank’s Board of Executive Directors today approved a $100 million development policy operation (DPO) to help Nepal strengthen its ongoing efforts to implement green, resilient, and inclusive development (GRID). This is the second in a programmatic series of three DPOs which aims to improve the enabling environment for Nepal's sustainability pathway, according to the World Bank.

“This programmatic DPO series is a catalyst for Nepal to build greater resilience and sustainability, and drive and protect the basis for long-term growth for all Nepalis,” World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka David Sislen said, adding that this operation supports Nepal’s policy programme in a variety of sectors including green fiscal instruments, water security, irrigation, land use and management, sustainable forest management, and climate and disaster information systems.

Since 2021, the government has laid out an ambitious programme of action in the area of environmental sustainability, resilience, and inclusive development. This approach recognises the need for a development model to address the intertwined challenges of joblessness, pandemics, expanding economic opportunities for vulnerable groups, and climate and other environmental risks that impact Nepal’s people, prosperity, and environment.

The World Bank DPO series anchors Nepal’s ongoing shift to a more sustainable development path. Nepal’s policies supported by the DPO series arose from stakeholder dialogues and Nepal’s own development priority programmes and plans. These policies aim to improve air quality, expand hydro-meteorological services to better disaster risk reduction, improve water security by boosting year-round irrigation and safe water supply, strengthen community forest management, and enhance land use planning.

“Nepal continues to put in place a strong policy programme that recognises that resilience is best achieved when sustainability and inclusion are also pursued in an integrated way,” World Bank Programme Leader for Maldives, Nepal, and Sri Lanka and Task Team Leader for the operation Stephen Danyo, said adding that it is at the heart of Nepal’s approach to sustainability, resilience, and inclusion.

Nepal’s policy programme is set to help the country attract and expand investment in several sectors important for jobs, livelihoods, health, and resilience for millions of citizens.  As one part of the solution to the challenges mentioned above, the DPO series supports Nepal to generate durable development impacts.

WePOWER launches National Chapter in Nepal to strengthen women’s roles in energy sector

The South Asia Women in Power Sector Professional Network (WePOWER) Nepal National Chapter (NNC) has been today officially launched at the World Bank Country Office in Kathmandu.

WePOWER is a coalition of almost 50 energy sector stakeholders—including utilities, universities and professional associations—and has national chapters in Bangladesh, Bhutan, India, Pakistan and Sri Lanka. The launch of the Nepal chapter is a crucial step in promoting new national and regional partnerships to foster skills for advanced jobs and leadership roles for women in Nepal’s energy sector, claims the World Bank.

“The World Bank is proud to serve as the interim secretariat for WePOWER and we are committed to creating more jobs for women in Nepal,"  World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka David Sislen said, adding that they want to see more women in the workforce and more women engaged in the critical policy dialogues that are shaping Nepal’s future.

The WePOWER NNC has five Nepali partners: Alternative Energy Promotion Center, Institute of Engineering-Tribhuvan University, National Association of Community Electricity Users-Nepal, Nepal Electricity Authority, and Nepal Engineers’ Association Women’s Committee.

"WePOWER is not just a network, it is also a commitment to empower women in energy," said chair of the NNC Dr Sangeeta Singh. "Through WePOWER, we are helping to promote equal representation and create a brighter, more sustainable, and resilient future for all."

Since 2019, when the first WePOWER Regional Conference was held in Kathmandu, WePOWER partners in Nepal have been instrumental in launching a range of gender-related activities benefitting 3,215 female professionals and students. These include hiring 214 women professionals, providing internships for 225 female students, organizing professional workshops/training for 1,584 women professionals, and supporting 32 women-friendly policies that benefitted 1,124 women professionals. Moving forward, the NNC will continue to support the participation of more women professionals in Nepal’s energy sector through its work plan.

“This milestone brings vital opportunities for women in the energy sector to build networks, develop leadership skills, and advance their careers," Country Director of the Asian Development Bank Nepal Arnaud Cauchois said, adding that the ADB is proud to support efforts that close gender gaps and promote women’s participation in key sectors.

Representatives from key energy sector utilities, development partners, private sector organizations, and academia attended the launch event. The event also included a roundtable discussion on how the NNC can foster skills for advanced jobs and leadership roles for women in Nepal’s energy sector. The speakers highlighted that the NNC has the potential to be a collective voice to advocate for change and push for more affirmative policies on caregiving, behaviour change, and other aspects that affect women’s abilities to take up leadership roles.

Cost of non-compliance: Billions worth infrastructure damaged, death toll rises to 169

Lack of serious disaster preparedness, non-compliance, and timely rescue has cost the country billions.  

Flood and landslide caused by incessant rainfall that started on Thursday afternoon has damaged infrastructure, including roads, bridges, hydropower projects, power lines and buildings, worth billions, whereas some 169 people also lost their lives.

The death toll from disaster-related incidents across the country has reached 169, according to the Home Ministry.  In addition to the loss of lives, the infrastructure damage is also extensive due to inaction of the government.

According the World Bank, the government's disaster-related expenditures between 2012 and 2020 amounted to over $3.8 billion (Rs 451.45 billion), or an annual average of about $430 million (Rs 50 billion). However, this year's disaster-related expenditures might be double the annual average to around $800 million. 

According to Armed Police Force (APF) under Home Ministry, some 60 others are injured, while 54 are missing. "Floods and landslides triggered by incessant rain since Thursday afternoon damaged 322 houses and 16 bridges across the country," the APF reported.

The three districts in the Valley — Kathmandu, Lalitpur and Bhaktapur — recorded some 79 deaths, with 52 in Kathmandu alone. The Southern part of Lalitpur district is still cut-off with the rest of the district due to landslide and electricity outage, due to heavy downpour. 

Likewise, Kathmandu Valley is cut-off with the rest of the country due to landslide and flood-caused bridge and road damage. The vehicles are seen on the highways that lead to the Kathmandu Valley.

The eastern entry point to the Kathmandu Valley, Banepa, is obstructed due to road damage on BP Highway, whereas the western entry point to the Kathmandu Valley, Thankot, is obstructed due to landslide and road damage in Naubise. The security forces are, however, working hard to clear the roads following to western entry point, Thankot, for emergency rescue operations also.

Likewise, some 66 deaths were reported in Bagmati Province, excluding the Kathmandu Valley.

Koshi and Madhesh Provinces recorded some 21 and three deaths, respectively, the report stated, adding that no fatalities have been recorded in the other four provinces. But Butwal, in the Lumbini Province, was flooded that halted transportation.

Experts to explore social protection's role in reducing poverty, building resilience and investing in human capital

The government is committed to building a more inclusive social protection system that serves the needs of all, especially our children and the future generations.

Inaugurating the conference 'Resilient and Inclusive Social Protection: Investing in Human Capital Development', here today, the deputy prime minister and finance minister Bishnu Paudel reiterated the government's commitment. 

"This conference comes at a crucial time as Nepal is investing in its human capital,” he said at the conference organised jointly by the government, National Planning Commission (NPC), in partnership with UNICEF and the World Bank (WB), 

This is the second international conference on social protection -- organised in Kathmandu today and tomorrow -- that aims to foster critical dialogue on how social protection can be leveraged to reduce poverty, build resilience, and invest in the human capital of future generations.

Nepal is undergoing rapid economic, social, and demographic changes, with approximately 20 per cent of the population still living below the poverty line and significant inequality remaining a concern. Nepal’s Constitution guarantees the right to social security for vulnerable groups, but much of its investment in social protection has focused on the elderly, with limited attention to children and other vulnerable groups.

The vice chair of NPC Prof Dr Shivaraj Adhikari on the occasion, said that the government, through the Sixteenth Periodic Plan, has given high priority to human capital development. "It is necessary to increase investment in children for this purpose," he said, highlighting the fact that human development is both a means and an end in the context of the country's development. He also emphasised that social protection plays a crucial role in building human capital.

Although the government has been increasing investment in social protection, the investment made in social protection has had only a limited impact on reducing poverty, building human capital, and promoting resilience against shocks and risks that may arise at various stages of the human life cycle.

“By investing in the early years, including through universal child grants, we can break intergenerational cycles of poverty that hold back future generations," said Regional Director of UNICEF South Asia Sanjay Wijesekera. 

"Through this conference, we are not only reaffirming our commitment to the children and young people of Nepal, but we are also challenging ourselves to create a world where every child and young person, no matter his or her circumstances, has the opportunity to thrive and contribute to a brighter, more resilient future," he added.

The conference builds on the momentum of the 2019 International Conference on Social Protection, which promoted policy debate on strengthening social protection for children and the expansion of the child grant, establishment of an integrated registry, increased use of the cash plus approach, investment in productive employment and social security for the formal and informal sectors.

This year’s conference provides a platform to reflect on key progress in Nepal since 2019 and for knowledge exchange, learning from best practices, and collaboration towards achieving SDG Target 1.3, which calls for implementing nationally appropriate social protection systems for all.

“In the face of economic challenges, global conflicts and climate change, adaptive social protection systems are more critical than ever,” said World Bank Operations Manager for Maldives, Nepal, and Sri Lanka Preeti Arora. 

“Effective social protection can buffer vulnerable populations, including women, youth, and children from crises while enabling them to invest in education, healthcare, and other essential services that enhance human capital and their productivity," she added.

The conference brings together senior representatives from the government, UNICEF, the World Bank, regional and global social protection experts, and key stakeholders from various sectors.

On the occasion, director at the Economic Policy Research Institute (EPRC) Dr Michael Samson delivered the keynote address on ‘Investment in social protection for human capital, inclusion and resilience – Global Perspective.”

गरिबी न्यूनीकरण, उत्थानशीलता निर्माण र मानव पुँजी निर्माणमा लगानी गर्न सामाजिक सुरक्षाको भूमिका

काठमाडौं । सामाजिक सुरक्षा र मानव पुँजी विकासमा सरकार प्रतिबद्ध रहेको उपप्रधानमन्त्री तथा अर्थमन्त्री विष्णु पौडेलले बताएका छन् । 

सरकार, राष्ट्रिय योजना आयोग, संयुक्त राष्ट्र संघीय बाल कोष  (युनिसेफ) र विश्व बैंकको संयुक्त साझेदारीमा विहीबार तथा शुक्रबार सामाजिक सुरक्षा र मानव पुँजी विकास सम्बन्धी दोस्रो अन्तर्राष्ट्रिय सम्मेलन काठमाडौंमा आयोजना भइरहेको ‘उत्थानशील तथा समावेशी सामाजिक संरक्षणः मानव पुँजी निर्माणमा लगानी’ सम्मेलन उद्घाटन गर्दै उनले मुलुकको आजको आवश्यकता र विशेष गरी हाम्रा बालबालिका र भावी पुस्ताको आवश्यकता पूरा गर्न थप समावेशी सामाजिक संरक्षण प्रणाली निर्माण गर्न प्रतिबद्ध रहेको बताएका हुन् ।। 

‘उत्थानशील तथा समावेशी सामाजिक संरक्षणः मानव पुँजी निर्माणमा लगानी’ दुईदिने सम्मेलनले गरिबी न्यूनीकरण गर्न, उत्थानशीलता निर्माण गर्न र भावी पुस्ताको मानव पुँजीमा लगानी गर्न सामाजिक संरक्षणलाई कसरी सदुपयोग गर्न सकिन्छ भन्ने विषयमा समालोचनात्मक संवादलाई प्रोत्साहन गर्ने लक्ष्य राखेको छ । 

नेपालले आफ्नो मानव पुँजी निर्माणमा लगानी बढाउदैँ गरेको महत्वपूर्ण समयमा यो सम्मेलनको आयोजना भएकोमा मन्त्री पौडेलले आयोजकलाई धन्यवाद पनि दिए । 

यतिबेला नेपाल तीव्र आर्थिक, सामाजिक र जनसांख्यिकीय परिवर्तनहरूबाट गुज्रिरहेको छ। लगभग २० प्रतिशत जनसंख्या अझै पनि निरपेक्ष गरिबीको रेखामुनि बाँचिरहेका छन् र उल्लेखनीय रूपमा रहेको आर्थिक-सामाजिक असमानता अझै पनि चिन्ताको विषय रहेको छ।

नेपालको संविधानले जोखिममा रहेका सबै समूहका लागि सामाजिक संरक्षणको हक सुनिश्चित गरेको छ। तर सामाजिक संरक्षण सम्बन्धी अधिकांश लगानी ज्येष्ठ नागरिकहरूमा केन्द्रित रहेको छ।बालबालिका र अन्य जोखिममा परेका समूहहरूलाई सीमित रुपमा मात्र ध्यान दिइएको अवस्था छ। 

उत्त, अवसरमा बोल्दै राष्ट्रिय योजना आयोगका उपाध्यक्ष प्रा डा शिवराज अधिकारीले सरकारले सोर्हौं योजनामार्फत मानव पुँजी निर्माणलाई उच्च प्राथमिकता प्रदान गरेको स्मरण गरे । “यसका लागि बालबालिकामा लगानी बढाउनु आवश्यक रहेको छ,” उनले भने, “देश विकासको सन्दर्भमा मानव विकास साधन र साध्य दुबै हुन्छन् ।” 

यस्तै, उनले सामाजिक संरक्षणले मानव पुँजी निर्माणमा महत्वपूर्ण भुमिका निर्वाह गर्ने विषयलाई पनि जोड दिए । 

सरकारले सामाजिक सुरक्षामा लगानी बढाउदैँ गएको भएतापनि सामाजिक सुरक्षा गरिने लगानीले गरिबी घटाउन, मानव पुँजी निर्माण गर्न र मानव जीवन(चक्रका विभिन्न चरणमा आईपर्न सक्ने झट्का तथा जोखिमहरूबाट उत्थानशीलता प्रवर्द्धन गर्न सीमित प्रभाव मात्र पारेको अवस्था छ।

"प्रारम्भिक वर्षहरूमा लगानी गरेर, जस्तै सर्वब्यापी बाल अनुदान कार्यक्रमहरू मार्फत, हामीले गरिबीको अन्तर पुस्ताको चक्रलाई तोड्न सक्छौं, जसले भविष्यका पुस्तालाई पछाडि धकेलिरहेको छ," दक्षिण एशियाका युनिसेफ क्षेत्रीय निर्देशक सञ्जय विजेसेकराले भने ।

"यस सम्मेलन मार्फत, हामीले नेपालका बालबालिका र युवाहरू प्रतिको हाम्रो प्रतिबद्धतालाई मात्र मात्र जोड दिइरहेका छैनौँ, हामी आफैंलाई चुनौती दिइरहेका छौं कि हरेक बालबालिका र युवाले, चाहे उनीहरूको अवस्था जे भए पनि, अघि बढ्ने र उज्यालो र अझ बढी उत्थानशील भविष्यमा योगदान पुर्याउने अवसर पाउने अवस्था सिर्जना गर्न हामी प्रतिबद्ध रहेको संन्देश दिन चाहन्छौं ।"

यस सम्मेलनले सन् २०१९ को सामाजिक संरक्षणसम्बन्धी पहिलो अन्तर्राष्ट्रिय सम्मेलनले उठाएका मुद्दाहरूलाई अझ अगाडि बढाउनेछ । पहिलो सम्मेलनले बालबालिकाको सामाजिक संरक्षणलाई सुदृढ गर्ने र बाल अनुदानको विस्तार, एकीकृत सामाजिक लगत स्थापना, नगद प्लस दृष्टिकोणको बढ्दो प्रयोग, उत्पादनमूलक क्षेत्रमा लगानी, औपचारिक र अनौपचारिक क्षेत्रका लागि रोजगारी र सामाजिक सुरक्षा जस्ता नीतिगत बहसलाई जोड दिएको थियो।

यो सम्मेलनले सन् २०१९ यता सामाजिक संरक्षणको क्षेत्रमा नेपालले हासिल गरेका प्रमुख उपलब्धिहरू प्रस्तुत गर्न र दिगो विकास लक्ष्यहरु मध्येको लक्ष्य १।३ जसले सबैका लागि राष्ट्रिय रूपमा उपयुक्त सामाजिक सुरक्षा प्रणालीहरू लागू गर्न आह्वान गर्दछ । उक्त लक्ष्य हासिल गर्न ज्ञान आदानप्रदान गर्न, उत्कृष्ट अभ्यासहरूबाट सिक्न र सहकार्य गर्ने प्रभावकारी मञ्च प्रदान पनि गर्ने आयोजकले जनाएका छन् । 

"आर्थिक चुनौतिहरू, विश्वव्यापी द्वन्द्व र जलवायु परिवर्तनको सामना गर्न, अनुकूलनशील सामाजिक संरक्षण प्रणालीहरू पहिलेभन्दा धेरै महत्त्वपूर्ण भएका छन्," माल्दिभ्स, नेपाल र श्रीलंकाका लागि विश्व बैंककी सञ्चालन प्रबन्धक प्रीति अरोराले उक्त अवसरमा भनिन् । 

"प्रभावकारी सामाजिक सुरक्षाले जोखिममा रहेका जनसङ्ख्या, जस्तै महिला, युवा र बालबालिकालाई शिक्षा, स्वास्थ्य सेवा र मानव पुँजी वृद्धि गर्ने र उत्पादनशीलता बढाउने अन्य आवश्यक सेवाहरूमा लगानी गर्न सक्षम बनाएर संकटबाट जोगाउन सक्छ," उनले भनिन् । 

यसैगरि, आर्थिक नीति अनुसन्धान संस्थानका निर्देशक डा माइकल स्यामसनले ‘मानव पुँजी, समावेशीकरण र उत्थानशीलताका लागि सामाजिक संरक्षणमा लगानी – विश्वव्यापी परिवेश’ विषयक सम्मेलनको मुख्य कार्यपत्र प्रस्तुत गरेका थिए । उनले आफनो कार्यपत्रमा सामाजिक सुरक्षाका पहिलो, दोस्रो तथा तेस्रो लहर र ती लहरमा नेपालको अवस्थाका बारेमा प्रकाश पारेका थिए ।

सम्मेलनमा नेपाल सरकार, युनिसेफ, विश्व बैंक, क्षेत्रीय र विश्वव्यापी सामाजिक संरक्षण क्षेत्रका विज्ञहरू र विभिन्न क्षेत्रका प्रमुख सरोकारवालाहरूका वरिष्ठ प्रतिनिधिहरूको  सहभागिता रहेको छ। 

Government, World Bank sign $100 million project to improve provincial and local roads

The Government and the World Bank on Monday signed a financing agreement for a $100 million concessional loan from the International Development Association (IDA) to help improve the connectivity, efficiency, resilience, and safety of Nepal’s provincial and local road network and strengthen the government’s capacity to manage the road network.

The Provincial and Local Roads Improvement Programme (PLRIP)-Phase 1 will build and maintain about 3,000 kilometers of all-weather, resilient, and safe provincial and local roads and bridges, benefiting about one million people in Sudurpashchim, Karnali, and Madhesh provinces, according to a press note issued by the World Bank. "It will also strengthen the institutional, management and technical capacity of provincial and local governments to plan, design, construct, and maintain road and bridge infrastructure and improve service delivery."

The financing agreement was signed by the finance secretary Dr Ram Prasad Ghimire on behalf of the Government and the World Bank country director for Maldives, Nepal and Sri Lanka, David Sislen, at the Finance Ministry on Monday. A separate project agreement was also signed by the Ministry of Urban Development, the participating provinces, and the World Bank.

“This programme will help enhance rural connectivity, improve access to services and markets, and unlock Nepal’s economic potential in an inclusive manner, while reducing travel time and costs for Nepalis,” said joint secretary at the Finance Ministry Shreekrishna Nepal.

The Government recognises the scale and magnitude of transport connectivity challenges and the need for substantial investment to support provincial and local governments as they adapt to decentralised governance. "To address this, the PLRIP will help strengthen rural development and build the capacity of the provincial and local governments to handle complex sector challenges," the press note reads, adding that the first of the three-phase programme will target three of Nepal’s seven provinces and four local areas which will be scaled up in future phases.

“The programme supports Nepal’s federalism agenda by empowering provincial and local governments and promoting inter-governmental coordination in the transport connectivity sector to help improve the lives of Nepalis through better infrastructure and services,” said World Bank country director for Maldives, Nepal, and Sri Lanka, David Sislen, after the signing the agreement.

The programme will introduce several best practices including five-year performance-based maintenance along with construction contracts, routine maintenance through self-help groups, community-led complimentary infrastructure, pilots on alternative means of connectivity and rural transport services, approach roads, and an online program monitoring and management system.

World Bank senior managing director visits Nepal

The World Bank’s senior managing director Axel van Trotsenburg arrived in Kathmandu today on his first official visit to Nepal, to meet with government and other stakeholders and chair the Third Replenishment meeting of the World Bank’s fund for low-income countries, the International Development Association (IDA).

As part of his five-day visit, today, Trotsenburg met with Prime Minister Pushpa Kamal Dahal, finance minister Barsha Man Pun, chief secretary Baikuntha Aryal, and development partners.

Trotsenburg will chair the Third IDA21 Replenishment meeting hosted by the government in Kathmandu on June 18-21. The International Development Association (IDA) is the part of the World Bank that helps the world’s low-income countries.

In 2024, IDA is working with donors and borrowing countries to replenish resources that will be used to deliver on global development goals. IDA21-- the 21st replenishment round since 1960 -- will work to end poverty on a livable planet.

The four-day IDA21 meeting in Kathmandu will bring together officials from 65 donor governments and representatives of borrowing member countries who will discuss the proposed IDA21 policy focus areas--people, planet, prosperity, infrastructure, and digitalisation. They will also look at financing scenarios, the level of donor contributions required to support these scenarios and assess the financing needs of countries supported by IDA.

Trotsenburg will also visit the IDA-financed Earthquake Housing Reconstruction Project in Rabiopi in Bagmati Province as part of the replenishment meeting.

The Third IDA21 Replenishment meeting will also be attended by other senior World Bank Group officials, including World Bank managing director for Operations Anna Bjerde and managing director and World Bank Group chief financial officer Anshula Kant.

Government and World Bank launch $4.6 million project to strengthen response to gender-based violence

The Institutionalising Gender-Based Violence Response in Federal Nepal Project was jointly launched today by the minister of Women, Children, and Senior Citizens Bhagbati Chaudhary and World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos.

The three-year project will help increase women’s and girls’ access to multisectoral gender-based violence (GBV) response services such as legal aid, psychosocial counseling, and medical support in six municipalities in Koshi and Lumbini provinces, a press note issued by the World Bank reads, adding that it aims to benefit 49,000 women and girls who have experienced violence through better access to quality services.

“Addressing gender-based violence is a priority for the government of Nepal," minister of Women, Children, and Senior Citizens Bhagbati Chaudhary said, adding that the project will help establish a functioning coordination system to link GBV response mechanisms at the municipal, provincial, and federal levels.

The project is financed by a $4.6 million grant from the State and Peacebuilding Trust Fund and will be implemented by the Ministry of Women, Children, and Senior Citizens.

The project will help strengthen institutional frameworks and capacity, pilot innovative GBV service models with a focus on improving service coverage and quality, and promote behavior change among first responders and local stakeholders for improved GBV response.

“This project will help empower women and girls to readily access GBV services, report violence, and seek help, especially in the most remote and hard to reach areas," World Bank country director Faris Hadad-Zervos said, adding that it is key to supporting Nepal’s development that is green, resilient, and inclusive.

The government and the World Bank signed the financing agreements for the project on April 24, 2024.

Fiscal federalism progressing at a moderate pace, further reforms needed to strengthen outcomes

Nepal’s legal and institutional reforms under fiscal federalism and public financial management at the provincial and local levels have continued but at a moderate pace, says the World Bank’s Nepal Fiscal Federalism Update 2024.

A reduction of available financial resources in fiscal year 2023 for provincial and local governments, mainly due to a decrease in federal revenue, led to the first fiscal deficit at the subnational level since the outset of fiscal federalism in 2017, it says, adding that to enhance the outcomes of fiscal federalism and public financial management including improved revenue generation for all three tiers of government, the Fiscal Federalism Coordination Division at the Finance Ministry was designated to coordinate public financial management reform efforts and the preparation and implementation of a Fiscal Federalism Roadmap.

The report provides a comprehensive review of the progress of fiscal federalism in Nepal. The recommendations are well aligned with our national-level vision on smoothing the fiscal transfers to help subnational governments carry out their responsibilities effectively. "The report also informs and supports our ongoing efforts to clarify responsibilities among the three tiers of government and advance fiscal federalism,” said Chief Secretary Dr Baikuntha Aryal.

Building on the first edition of the Nepal Fiscal Federalism Update, the 2024 edition explores in-depth the key pillars of fiscal federalism in Nepal: Revenue Assignment and Administration; Expenditure Assignment and Administration; Inter-Governmental Fiscal Transfers; Borrowing and Capital Finance; and Fiscal Revenue from Natural Resources.

It recommends specific measures to upgrade the Inter-Governmental Fiscal Transfer system and establish a consolidated public financial management performance database that includes data from the subnational levels to enhance evidence-based decision making and transparency.

“The report highlights the need to upgrade institutional arrangements for the Intergovernmental Fiscal Transfers system to make the transfers more needs-based and timely, and to increase the fiscal autonomy of provincial and local governments, in order to improve fiscal federalism outcomes,” said  chairman of the National Natural Resources and Fiscal Commission Balananda Paudel, on the occasion.

The report also recommends strengthening provincial and local-level institutional arrangements for fiscal federalism and public financial management operations, including actions to improve budget credibility to improve delivery of services by subnational governments.

“Fiscal Federalism is a foundation for sustained service delivery by provincial and local governments," World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos said, adding that they need adequate financial resources and the ability to make spending decisions at the subnational level, in the spirit of federalism and the Constitution. "The World Bank is committed to supporting the Government of Nepal, in close collaboration with other development partners, to further solidify fiscal federalism in Nepal."

World Bank approves $80 million to strengthen financial sector, increase access to financial services

May 6

The World Bank’s Board of Executive Directors today approved an $80 million development policy credit for Nepal to strengthen the stability of the financial sector, diversify financial solutions, and increase access to financial services.

The third Finance for Growth Development Policy Credit aims to improve the functioning of the financial sector to support private sector-led growth. The operation will strengthen the supervision of the banking and insurance sectors in Nepal and foster financial product innovations in capital, insurance, and disaster risk markets, claims a press note issued by the World Bank.

The operation will also increase financial inclusion through digitalisation, enhanced credit infrastructure and improved financial literacy, with a focus on women entrepreneurs, it adds.

“This project supports Nepal’s green, resilient, and inclusive development and will help create an enabling environment for private investment to contribute to Nepal’s economic growth, particularly benefiting the poor and vulnerable,” said World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos.

The operation also supports Nepal's climate agenda by, for example, enhancing supervision of climate risks by requiring disclosures of climate-related risks and impacts of the banking sector portfolio; introducing risk-informed pricing for insurance products, including climate risks; establishing a framework for the issuance of green bonds; and integrating climate-related mitigation and adaptation commitments into credit guarantee products.

"This operation supports the government’s transformative financial sector reform agenda to promote private sector-led growth," World Bank task team leader for the project Tatsiana Kliatskova said, adding that the reforms in banking, insurance, and capital markets are instrumental for the sector’s resilience and the critical role it plays to enable private capital mobilisation.

Economy to grow by 3.87 per cent, per capita income reaches $1456

The economy is going to grow by only 3.87 per cent at the consumer's price, in the current fiscal year.

According to National Statistics Office (NSO), the gross domestic production (GDP) is estimated to grow by 3.87 per cent despite the government's target of 6 per cent.

The economy will grow by 3.54 per cent at constant price in the current fiscal year, the report launched today reads.

Earlier, the government has projected the economy to grow by 4 per cent, whereas the World Bank (WB) has estimated it to grow by 3.3 per cent, the International Monetary Fund (IMF) by 3.1 per cent and Asian Development Bank (ADB) by 3.6 per cent due to slowdown in the economy.

Nepal’s economy will be the size of Rs 5.704 trillion by the end of the current fiscal year from Rs 5.348 in the last fiscal year, the report reads, adding that the per capita income is also expected to increase by $51 to $1456 in the current fiscal year from last fiscal year's $1405.

The increase in income is too low as Nepal is graduating to Developing Country (DC) status by 2026 from current Least Developed Country (LDC) status.

Due to the contraction in some sectors of the economy and the low capital expenditure has pulled the economic growth rate downwards, the report exposes.

Likewise, the report also shows that the share of service sector in the economy has reached 62.9 per cent. "The contribution of the secondary sector (industry-construction) is 12.5 per cent and the share of the primary sector (agriculture) is 24.6 per cent," it claims, adding that this fiscal year, the contribution of agriculture has increased slightly compared to last year, though the increase in agriculture sector alone cannot push the economic growth upwards.

Agriculture sector will grow by 3.05 per cent, while the non-agriculture sector will grow by 3.75 per cent, it adds.

The industrial sector has also contracted for the second year in a row due to the inability to increase production, according to the report. "This year, the industrial sector has contracted by 1.60 per cent, wheras last year there was a contraction of 1.98 per cent."

In 2021-22, the growth of the industry was 6.70 per cent, the report added estimating that there will be a contraction in the production of industries as there has been no significant improvement in the economy globally due to various adverse factors created in the economy in recent times.