The Government of Nepal and the Asian Development Bank (ADB) have formalized an agreement for a concessional loan totaling Rs 13.3 billion (USD 100 million).

The accord, signed by Finance Secretary Krishna Hari Pushkar and ADB Nepal’s Regional Country Director Arnaud Cauchois at the Ministry of Finance, is earmarked for advancing crucial programs in Public Finance Management and Strengthening Service Delivery.

Finance Secretary Pushkar emphasized the paramount importance of these initiatives, stating, “The government’s primary focus is on enhancing Public Finance Management and Strengthening Service Delivery. The concessional loan is set to play a crucial role in reshaping public finance and promoting fiscal federalism.”

Regional Director Cauchois expressed confidence in the positive impact of the loan, asserting that it would contribute to the sustainability of Nepal’s financial system and enhance the efficacy of the government’s periodic programs. He highlighted the link between the loan and Nepal’s medium-term and long-term national plan, aiming to elevate the country to a middle-income status by 2030.

Nepal secured a concessional loan for budgetary support. The first phase of improving Public Finance Management and Strengthening Service Delivery is done. The current loan is earmarked for the second phase, as announced.