Refund of foreign aid not as expected

Kathmandu: The reimbursement of the foreign assistance has not been received as per the expectations since the latter was not effectively mobilised.

The money provided by the donor agencies was not mobilised as the projects getting the foreign aid could not take the expected momentum.

Chief of the International Economic Assistance Coordination Division at the Ministry of Finance, Joint Secretary Baikuntha Aryal, said Rs. 18 billion has been refunded in the five months of the current fiscal year.

The government has stated in the budget statement for the current fiscal year that foreign grants of Rs. 72 billion 167 million 628 thousand and foreign loan Rs. 214 billion 35 million 429 thousand would be mobilised.

According to Aryal, the expected refund could not be taken as irrigation, hydropower and infrastructure projects dependent on foreign assistance could not make the desired progress.

Commitment of Rs.99 billion 370 million has been received as of November 15 and out of this amount agreement has been reached for Rs. 94 billion 182 million, the Ministry of Finance has stated.

The government had stated that the international economic assistance would be mobilised as per national requirement and priority.