Foreign assistance worth Rs 90.54 billion pledged in first four months of current FY

Published On: December 29, 2020 08:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, Dec 28: Nepal received a commitment of foreign assistance worth Rs 90.54 billion in the first four months of the current fiscal year. Of the amount, 85.8 percent has been pledged in loan assistance. 

At a time when the government is struggling to meet its revenue collection target, the country is facing an increasing dependency on foreign assistance. The external loan amount seems to rise exorbitantly in the coming days also as the government has aimed to manage the funds for midterm polls and import vaccines against COVID-19.  

The government needs an estimated over Rs 30 billion to hold the announced mid term polls on April 30 and May 10. Similarly, the government has also been reiterating that it will provide the vaccination against the pandemic free of cost to the people.  

Records at the Ministry of Finance show that Nepal received a foreign assistance commitment for Rs 15.67 billion during mid-July and mid-November in the last fiscal year. Considering the figure, the foreign assistance commitment has been increased six-folds during the review period.

Of the pledged amount, the share of foreign grants has plunged heavily to mere 14.2 percent from 78.8 percent. But the share of foreign loans has surged to 85.8 percent during the review period this year compared to 21.2 percent of last year.

This year, donor agencies have pledged to provide Nepal Rs 54 billion for strategic road and trade improvement projects, the largest of all. Similarly, the SASEC Power Transmission and Distribution System Strengthening Project is set to receive funds worth Rs 27.87 billion. 


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