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Finance Minister Barsha Man Pun last night held separate meetings with World Bank (WB) Group Vice Presidents Akihiko Nishio (Development Finance) and Guangzhe Chen (Infrastructure) at the Washington DC-based WB Headquarters.

According to the Minister's Secretariat, the minister thanked Akihiko Nishio for entertaining Nepal's proposal to organize a meeting of the International Development Association (IDA-21) under the World Bank Group in Kathmandu in the coming June.

He also met with Riccardo Puliti, International Finance Corporation (IFC) regional vice president for Asia and the Pacific.

The finance minister apprised WB Vice President Akihito that preparations for hosting the event are going well in cooperation with the WB Nepal Office in Kathmandu. He also utilized the time to call on the WB to explore further areas of investment in Nepal through concessional loans or grant schemes.

He said that Nepal's latest achievements in the areas of telecommunications, transport, and clean energy are capable of catching global attention.

The minister said that Nepal has adopted the Kathmandu Declaration incorporating a strategic action plan for Green, Resilient, and Inclusive Development (Grid) that was endorsed by the Government of Nepal and its 16 development partners in 2021.  As per the concept of the Declaration, Nepal will be implementing the First Nepal Green, Resilient, and Inclusive Programmatic DPC in the upcoming year.

The minister also acknowledged the WB's initiation to invest in the 1,063-MW upper Arun Semi Reservoir Project and the 635-MW Dudhkoshi Reservoir Project.

Similarly, during his meeting with another Vice President, the minister said Nepal accorded top priority to infrastructure development.  "The Nepal Government focuses on energy, transport and urban infrastructure-centered projects," he said.

He said a roundtable meeting held with the WB's Kathmandu-based officials regarding the financial modality of the Upper Arun and Dudhkosi was productive, expressing his hope of finding a solution for the financial management for the implementations of projects soon.

Stating that both projects are the 'game changer' projects of Nepal, he expressed the belief that their development will enhance the country's capacity of building big infrastructure projects. He shared that they were confident that the finance management of the Upper Arun Hydropower Project would be done within the coming mid-July.

The finance minister informed that works like distribution of compensation to the people affected by the Upper Arun Project, construction of the approach road and land acquisition are in completion phase.

Reiterating that Nepal has ensured the regional market for hydropower, he said an agreement has been reached for exporting 10,000 megawatts power to India in the next 10 years and the process has been forwarded for Bangladesh to buy Nepal's power. 

During the meeting with IFC Vice President Puliti, Finance Minister Pun expressed the belief that collaboration between IFC and Nepal would be further deepened in the coming days. Recalling that Nepal and IFC have five decades long collaboration, he said IFC has invested in Nepal's tourism sector for the first time.

He said the cooperation extended by IFC for Nepal's economic endeavors and for the private sector development through capital management is laudable. He also appealed for increasing the investment areas as well as capital mobilization and technical assistance in the days to come, noting that IFC has been providing assistance in Nepal's tourism, energy, transportation and agriculture sectors.

Minister Pun reiterated that there are better investment opportunities for investment in the information technology sector in the coming days. According to him, Nepal has adopted the policy of welcoming foreign direct investment due to its small economy, which is looking for investment capital.

In the three separate meetings, the finance minister informed that the Third Investment Summit is going to be held on April 28 and 29 in Kathmandu with the goal of increasing the foreign direct investment, adding that high-level participation is expected in it.

Minister Pun left for the USA on Monday to participate in the Joint Spring-time Meeting of the WB and the IMF.

Finance Minister Barshaman Pun has left for the United States to attend a joint meeting of the World Bank and International Monetary Fund.

Minister Pun left for Washington DC via Qatar Airways this morning leading a four-member delegation, Minister Pun's secretariat informed.

The delegation comprises Chief of the Ministry's International Economic Cooperation and Coordination Division Sri Krishna Nepal, Under-Secretary Kanchan Basnet, who looks after the WB desk under the same division, and another Under-Secretary Bhupal Raj Shakya, who is also the personal secretary of Minister Pun,

During the three-day US visit, Minister Pun will meet WB's Managing Director Anna Bjerde, WB's Vice President for the South Asia Martin Riser, WB's Vice President for Development Finance (DFI) Operations Akihiko Nishio, WB's Vice President for Infrastructure Guangzhe Chen, Vice President of International Finance Corporation (IFC) Ricardo Puliti and Assistant Managing Director of the International Monetary Fund (IMF) Bo Li.

Minister Pun is scheduled to hold separate meetings with high-placed officials of the US Agency for International Development (USAID), officials of the US International Development Finance Corporation (DFP), American Chamber of Commerce President Atul Kasyap, representatives of the private sector and non-resident Nepalis,

Minister Pun will address the ministerial meeting of Group V-20 of the countries threatened by the impact of climate change as the keynote speaker. V-20 is a forum to raise voice in the global community to mitigate climate change risks and increase financial support during the transition period in the global economy.

Minister Pun will attend the sideline meeting on high-level climate nexus and session on clean energy transition in South Asia as well as various bilateral and multilateral meetings. In the meeting, Minister Pun will discuss preparations for the International Development Association (IDA)-21 meeting under the World Bank Group to be held in Kathmandu in June, determining the priority of investment partnership to be made by the World Bank in Nepal for the next five years, financial management of the 1,063 MW Upper Arun Semi-Reservoir Hydropower Project to be constructed in Sankhuwasabha and other projects in the pipeline.

Minister Pun had held discussions with Energy Minister Shakti Bahadur Basnet, Managing Director of Nepal Electricity Authority Kulman Ghising and resident chiefs of the World Bank and Asian Development Bank in Kathmandu a few days ago.

It was agreed in the meeting that the financial management of the Upper Arun Project would be done as soon as possible. The World Bank is leading the financial management of Upper Arun, which is a 'game changer' project. In the meeting of the World Bank and IMF, Minister Pun will apprise the development partners and the private sector, including the World Bank, about the reform efforts made by the government to create an investment-friendly environment in Nepal.

Minister Pun said that the development partners would be urged to increase support to Nepal's efforts to achieve the Sustainable Development Goals and reconstruction of physical infrastructure, health, education, reconstruction of buildings of private houses and educational institutions damaged due to the earthquake in Jajarkot, Rukum and Bajhang.

According to him, discussions will be held towards making effective implementation of the assistance being received from international development partners for policy reforms and identifying further areas and potentials of the areas of cooperation.

Finance Minister Barsha Man Pun has vowed to maintain transparency while determining the rate of revenues in the budget statement for the next fiscal year 2024/25.

Addressing an interaction on 'revenue consultations and budget preparation' organized by the Ministry of Finance and the Birgunj Chamber of Commerce and Industry today, he said since increasing and decreasing the tax rates through the budget statement courted controversy in the previous years, clarifications with reasons for the fluctuation in the tax rate would be included in the upcoming fiscal year's budget statement.

Finance Minister Pun also expressed the commitment that he would not change the tax or revenue rates to benefit a particular person or industry. "We are preparing to carry out works so that there is no controversy in the tax rates this year. We will clearly determine our threshold and work accordingly," he added.

He assured of his facilitation in establishing Birgunj as an 'economic city' as demanded by the industrialists and businesspersons of Birgunj. He reiterated the federal government's support to developing Birgunj as an industrial city.

"Pokhara has been recently declared as the tourism capital. The Prime Minister himself attended the declaration program organized under the leadership of the local level of Pokhara and the Gandaki Province, and announced Pokhara as a tourism capital. The demand of the industrialists and businesspersons of Birgunj to declare it as an 'economic city' is extremely positive. The federal government shall support if the Birgunj Metropolitan City and the Madhes Province propose the same," the finance minister said.

He described Birgunj as an industrial city as well as the economic capital city, stating that they would take initiatives to develop Birgunj as a special economic zone in this context.

According to him, the government will move ahead in deference to the desire and aspiration of the people.

Calling upon the politicians, the business community, civil society and bureaucrats to work hand in hand and contribute from their respective places for the country's development and prosperity, he reiterated that the government shall bring forth policy for protecting the industrial sector.

Honorable Finance Minister,

You might not be an economist, but as an experienced political leader, I am very hopeful about the upcoming budget of fiscal year 2081/082 BS. There isn’t any special formula for achieving prosperity, for it requires courage and competence in equal measure. In your second term as finance minister, you being a leader who has repeatedly won elections, are a close witness to our nation’s poverty. Hence, I am even more enthusiastic; will you this time introduce new measures for prosperity.

The budget is not just the financial exercise of the nation; it’s an outline and strategy document for solving the most complex issues of the nation, where the management of resources must be done with justice and wisdom. I find our national budget comprising remnants of the past goods, incomplete, inadequate present, and plan-less future.

So I want to ask you this Honorable Finance Minister: Why does the budget always seem so stale? Why can’t the budget makers become allies of public enthusiasm? Isn't this a beautiful opportunity to awaken the common people? Why can't budget makers become engineers of national transformation?

I lack any formal education in economics. However, as an entrepreneur and a citizen of Nepal, I could not help but offer my two cents worth of suggestions for the upcoming budget. And, I have presented some suggestions. I feel, we are in various circumstances, and these diverse suggestions will indeed be helpful.

Communicate hope

Social despair is more detrimental than economic despair. Please manifest hope and enthusiasm in your programs. In every allocation of your budget, ask yourself, ‘What energy does this bring?’

Address the youth

There is a significant gap between youth and national budget programs. Present programs for high-level youth development that can yield results in two years. Introduce ideas and schemes to control human capital flight. Correct the past tendency of discouraging youths and upstart entrepreneurs. 

Be courageous

The position of finance minister is very important. It's a place to showcase one's leadership and brilliance. Corruption in national resources distribution due to excessive politicization has created many problems in the past. To break this trend, it's necessary to show courage. Do something new, even if it seems impossibly ambitious. Do not allow budgetary programs to be mere election slogans.

Show empathy toward entrepreneurs

Business is not just about making money; it’s about growth. Nurture and promote entrepreneurship. The business sector is affected by incursions from various bodies of the state. It is in the grip of an economic recession. Seek various means of national revenue. Taxation is one face of the coin; the other is subsidies and facilities.

Don’t intimidate entrepreneurs in the name of taxes. Rather, motivate them to earn and contribute more. 

Invest in education

Provide opportunities for existing educational institutions to transform themselves. Prioritize educational governance. Invest in programs that create a better future rather than long-term productivity programs. We have omitted many things in education, which could be the sole significant medium for national prosperity.

Digital transformation

Digitalization is a weapon against corruption—use it. Be ambitious. Aim to become influential. Dare to reach your goal. Invite global information technology companies and donors for nation-building. However small contribution there may be, it will sow the seeds of prosperity.

Become a guardian

Save Nepal. Be a guardian to all of us. Listen to interest groups but verify from independent analysts. Make the budget inclusive and participatory. Analyze the potential decisions in favor and against. Be bold and be ready to address every concern of stakeholders.

My eighth suggestion, please spend at least one day studying and analyzing the trends, weaknesses, strengths, and obstacles of programs of the last two decades at the international level, along with their impacts. You will find more guiding principles from there than your economic advisors. Time provides an opportunity for a person to do something great. That time is now for you. Don’t miss the opportunity to become the ‘architect’ of a prosperous Nepal.

Finance Minister Barshaman Pun and three Vice-presidents—Martin Raiser, Akihiko Nishio and Guangzhe Chen—of the World Bank held discussion about mega infrastructure projects of Nepal. 

Also present on the occasion were Asian Development Bank Country Director for Nepal Arnaud Cauchois and representatives of the International Finance Corporation. 

Likewise, Finance Secretary Krishna Hari Pushkar, Revenue Secretary Dr Ram Prasad Ghimire, Joint-Secretaries, Uttar Kumar Khatry, Ritesh Kumar Shakya and Shreekrishna Nepal and Executive Director of the Nepal Electricity Authority (NEA) Kulman Ghising were also present in the meeting.  

The meeting discussed the development of a partnership framework between Nepal and the World Bank for next five years and taking forward the Upper Arun Hydropower Project and Dudhkoshi Reservoir Project, according to the Finance Minister’s Secretariat. 

Discussions were held on the 1,061 MW semi-reservoir Upper Arun Hydropower Project to be constructed in Bhotkhola Rural Municipality of Sankhuwasabha as a transformative project. 

The project construction will be carried out through a subsidiary company of the NEA with WB’s soft loan and a mixed investment from the Citizen Investment Trust, various domestic banks and the general public. 

It may be noted that NEA has established Upper Arun Hydropower Limited for the construction of the project. The detailed project report (DPR) has been prepared and the consultant has also been selected. The WB-led financial management for the project is expected to be finalized by mid-July. 

The project has been designed to run at full capacity for six hours a day in winter. The estimated cost of the project will be around Rs 161bn ($1.38bn).  

As informed, 70 percent of the total cost will be foreign investment and 30 percent domestic. The project is expected to generate 4.53bn units of energy annually. Similarly, there is a plan to construct a reservoir on Dudhkoshi River to generate 635 MW of hydropower at Lamidanda of Rawabensi rural municipality-3 of Khotang and Ramuwaghat of Chisankhugadhi rural municipality-6 of Okhaldhunga. 

In the virtual meeting, Finance Minister Pun thanked the World Bank for its contribution to Nepal’s economic development as one of the largest international development partners. The development projects have been carried out in Nepal with WB investment in transport, urban development, agriculture, forestry, environment, employment and other infrastructure sectors, he said, noting progress of these projects was not satisfactory due to various reasons. 

Finance Minister Pun, however, said he was committed to speeding up the works of these projects. Finance Minister Pun said Nepal has embraced the concept of green, resilient inclusive development. 

He urged the WB to promote green finance in infrastructure projects. The WB’s Vice-chairs and other office-bearers said the cooperation with Nepal was encouraging and expressed their views on the projects in the pipeline, including the Upper Arun Hydropower Project. 

Noting Nepal’s credit risk is low compared to other countries run by the International Development Association (IDA), they urged Nepal to enjoy non-concessional loans. 

Minister Pun said that a huge resource gap has been created in the implementation of sustainable development goals, infrastructure and climate adaptation due to financial constraints due to laxity in revenue mobilization. 

He opined that the development partners should enhance cooperation and cooperation with Nepal and support the efforts for economic revival.

Meanwhile, the finance minister has invited the Vice-presidents to participate in the third investment summit scheduled in Kathmandu from April 28.

South Korea Ambassador to Nepal Park Tae-Young paid a courtesy call on Finance Minister Barshaman Pun on Friday.

During the meeting, matters related to bilateral interests and mutual cooperation were discussed, the Finance Minister's secretariat shared.

In the meeting held at the Ministry of Finance today, Minister Pun said that Korea has been continuously investing in Nepal's infrastructure development, education, health and agriculture sectors.

On the occasion, Finance Minister Pun urged Ambassador Park to prod Korean investors for their significant participation in the Investment Summit of Nepal to be organized next month.

The country's development would not be possible without bringing international investments, Minister Pun said, adding the government was working to remove legal and policy hurdles to create an environment for the same.

Sharing that Nepal has potentials for investment in agriculture, energy, tourism and technology sectors, the Minister said the country has a lot to learn from South Korea's development model.

Ambassador Park said Korea would continue the previous development partnership programs and employment promotion system (EPS).

South Korea is interested to make further investment in Nepal on the occasion of the 50th anniversary of the establishment of Nepal-Korea diplomatic relations.

Finance Minister Barshaman Pun and three vice-chairpersons of the World Bank held discussions about mega infrastructure projects of Nepal.

Finance Minister Pun had a meeting with three vice-chairpersons of the World Bank, Martin Raiser, Akihiko Nishio and Guangzhe Chen, Finance Minister Pun's Secretariat confirmed.

Asian Development Bank Country Director for Nepal Arnaud Cauchois and representatives of the International Finance Corporation were also present on the occasion.

Likewise, Finance Secretary Krishna Hari Pushkar, Revenue Secretary Dr Ram Prasad Ghimire, Joint-Secretaries, Uttar Kumar Khatry, Ritesh Kumar Shakya and Shreekrishna Nepal and Executive Director of the Nepal Electricity Authority (NEA) Kulman Ghising were also present in the meeting. 

The meeting discussed the development of a partnership framework between Nepal and the World Bank for next five years and taking forward the Upper Arun Hydropower Project and Dudhkoshi Reservoir Project, according to the Finance Minister's Secretariat.

Discussions were held on the 1,061 MW semi-reservoir Upper Arun Hydropower Project to be constructed in Bhotkhola Rural Municipality of Sankhuwasabha as a transformative project.

The project construction will be carried out through a subsidiary company of the NEA with WB's soft loan and a mixed investment from the Citizen Investment Trust, various domestic banks and the general public.

It may be noted that NEA has established Upper Arun Hydropower Limited for the construction of the project. The detailed project report (DPR) has been prepared and the consultant has also been selected. The WB-led financial management for the project is expected to be finalized by mid-July.

The project has been designed to run at full capacity for six hours a day in winter. The estimated cost of the project will be around Rs 161 billion (1.38 billion US Dollars). 

Seventy percent of the total cost will be foreign investment and 30 percent domestic. The project is expected to generate 4.53 billion units of energy annually. Similarly, there is a plan to construct a reservoir on Dudhkoshi River to generate 635 MW of hydropower at Lamidanda of Rawabensi rural municipality-3 of Khotang and Ramuwaghat of Chisankhugadhi rural municipality-6 of Okhaldhunga.

In the virtual meeting, Finance Minister Pun thanked the World Bank for its contribution to Nepal's economic development as one of the largest international development partners. The development projects have been carried out in Nepal with WB investment in transport, urban development, agriculture, forestry, environment, employment and other infrastructure sectors, he said, noting progress of these projects was not satisfactory due to various reasons.

Finance Minister Pun, however, said he was committed to speeding up the works of these projects. Finance Minister Pun said Nepal has embraced the concept of green, resilient inclusive development.

He urged the WB to promote green finance in infrastructure projects. The WB's vice-presidents and other office-bearers said the cooperation with Nepal was encouraging and expressed their views on the projects in the pipeline, including the Upper Arun Hydropower Project.

Noting Nepal's credit risk is low compared to other countries run by the International Development Association (IDA), they urged Nepal to enjoy non-concessional loans.

Minister Pun said that a huge resource gap has been created in the implementation of sustainable development goals, infrastructure and climate adaptation due to financial constraints due to laxity in revenue mobilization.

He opined that the development partners should enhance cooperation and cooperation with Nepal and support the efforts for economic revival.

Finance Minister Barshaman Pun has called on the Government of Russia to invest in Nepal's hydropower generation and chemical fertilizer manufacturing.

He said so during a meeting with Russia's Ambassador to Nepal, Aleksei Novikov, who visited the minister to congratulate him on his recent appointment to the post, according to the Minister's Secretariat. 

"We have guaranteed an international market for consumption of power generated in the country. Nepal's hydropower sector is a suitable area for investment for the international community," the minister said, sharing about the government policy to open a chemical fertilizer factory within the country. "If Russia is interested in investing in it, we are ready to enable an atmosphere towards this end," he said. 

Stating about the government's decision of hosting the Nepal Investment Summit on April 28-29, the minister urged the Russian ambassador to encourage more and more investors from his country to join the event.

In response, the ambassador welcomed the minister's proposal, pledging to talk with investors in Russia about the matter. He said that geopolitically, Nepal presents a highly potential and positive zone for Russian investment.

According to the ambassador, a delegation from the Russian Chamber of Commerce and Industry will be visiting Nepal on Thursday to assess potential areas for investment through the Nepal Investment Summit.

The delegation will engage in discussions with government officials, the representatives of Investment Board Nepal and the private sector.

In the meeting, the minister expressed concerns about the reports of enrollment of Nepali youths in the Russian Army sans a bilateral agreement, calling on the Russian government to facilitate the safe return of those Nepali recruited in the Russian military forces.

The minister also drew the attention of Russia to enable an atmosphere for sending the bodies of those Nepali reportedly killed in the Russia-Ukraine War to home, providing treatment facilities to the injured and compensations to the bereaved families.

According to the minister, the Ministry of Foreign Affairs has already made it clear that Nepal has no policy of sending its citizens to join the Russian Army, but Nepali citizens who reached there to join the army force through various channels. The matter is a grave concern of the Nepal Government and the Nepali citizens as well. "I, through you, urge the Russian government to enable an atmosphere for the safe arrival of Nepali who are in the Russian force to get back home."

In response, the ambassador clarified that the Nepal Government bears no responsibility for the recruitment of Nepali in the Russian army. He argued that neither has the Russian government compelled them for recruitment. According to him, Nepalis who reach there via illegal routes, including India and Dubai, do so voluntarily.

Furthermore, he informed the minister that despite Russia's efforts to repatriate all Nepali individuals in its military, there have been reports of reluctance among many Nepalis towards this idea.

He also shared with the minister about ongoing preparations on the part of the Russian government to negotiate the release of Nepali citizens held captive by Ukrainian forces through an exchange involving Ukrainian military personnel under the control of the Russian Army.

Finance Minister Barshaman Pun has said that although the country's economy is somewhat sluggish, it has not reached a situation of crisis.

Addressing the 34th anniversary program of the Citizen Investment Trust (CIT) today, he claimed that the economy is beyond crisis and much improvement has been seen in the external sector.

However, Minister Pun admitted that some structural challenges remained in the public finance sector. He said that the negative over-publicity that the country's economy is on the verge of collapse has had its impact on the market.

"We have foreign currency reserves sufficient to cover the imports of goods and services for over one year. The remittance inflow is excellent. There is adequate liquidity in the banks and financial institutions. The investment will also gradually increase now," the finance minister said.

According to him, the external sector has presently become stronger as against the criticism some time back that Nepal's economy is also heading towards collapse like that of Sri Lanka, as the external sector, especially the balance of payments, looked bleak.

The finance minister expressed worry, saying the market thinking has not improved yet despite the positive economic indicators. He said investment can go up which will help in the economic growth if there is positive thinking and self-confidence in the market.

On the occasion, he gave assurance that he would continue the positive policies and plans brought by the former finance minister and adopted by the government before this. He added that the strict policies adopted in the past due to the economic contraction would be gradually made flexible.

According to him, discussions are being held with various line ministries and various agencies about this. Stating that signs of improvement have been seen in the stock market of late, he believed that it would help stimulate the market.

The finance minister stressed on the need of all sides and agencies to be responsible and accountable for facilitating the service delivery. "The political leadership has problems. We ourselves have felt the need of political sanctification. There is a need for administrative reforms in our public bodies," he reminded.

He urged the CIT management to invest the deposits with it in the productive sectors, big infrastructure construction projects and employment generation sector, becoming more professional. Minister Pun called on CIT to contribute to the national capital formation by mobilizing its deposits in the productive sector increasing productivity and job creation.

CIT Executive Director Parbat Kumar Karki said the CIT has played an important role in determining the basis of national capital formation by mobilizing the savings. According to him, the CIT is carrying out works in a planned way in expanding its business, profit-oriented investment and risk management, among other sectors.

Executive Director Karki claimed that CIT is increasing investment in the infrastructure sector prioritized by the government, making the CIT's works more technology-friendly and facilitating the service delivery. He further shared that a study has been initiated to connect the citizens in foreign employment in the CIT's program.

According to him, the net reserves of CIT as of mid-January of the current fiscal year is Rs 240 billion and 510 million while it has invested Rs 235 billion and 50 million during this period.