HEADLINE NEWS THE RISING NEPAL (DAILY)

Govt firm to speed up reform process: Deuba
Nepal Development Forum 2002 meet inaugurated

By A Staff Reporter

Kathmandu, Jan. 4: Prime Minister Sher Bahadur Deuba has pledged to introduce strong anti-corruption legislations at the upcoming session of Parliament and initiate governance reform measures to strengthen the civil service, the financial sector and decentralisation.

Inaugurating the Nepal Development Forum – 2002 meet here today, Prime Minister Deuba said that the government is fully committed to utilise its resources by prioritising its expenditure and adhering to a strict fiscal discipline as recommended by the Public Expenditure Review Commission.

The government is working to reduce non- essential and unproductive expenditures and has started reducing the long term liabilities by freezing hiring and terminating temporary jobs in the civil service, said Prime Minister Deuba.

Addressing the function, Premier Deuba further said that the government would continue to encourage non-governmental organisations and the civil society to render services aimed at poverty reduction within the government’s broad policy framework. He said "We would like to see them becoming more transparent and accountable."

The government’s priority will be on streamlining public enterprises through privatisation and minimising financial liabilities of the government, he informed the representatives of the donor agencies.

Prime Minister Deuba said that the proposed foreign aid policy, the concept paper on the Tenth Five Year Plan, sectoral priorities set by the Medium Term Expenditure Framework and policy papers prepared by the government can provide a framework under which development partners can develop their respective assistance strategies. "At this particular moment, we are at a critical phase in our development process – a situation created by internal disturbances and external environment, both resulting mainly from acts of terrorism. At a time like this we need a strong partnership," Prime Minister Deuba reaffirmed. "We need concerted efforts to attain the common goal of peace, progress and prosperity in the country," he added.

Minister for Finance Dr. Ram Sharan Mahat, while speaking at the function, said that the government would sincerely appreciate if the development partners extend their assistance in the form of budgetary support during "this hour of need."

"We are facing a resource crunch not only to maintain the ongoing priority programmes, but also to make resources available for rebuilding infrastructural establishments and essential facilities destroyed by the terrorists, and for providing relief and rehabilitating those who have been displaced, dispossessed, handicapped and maimed and for supporting the thousands of families that have lost their bread earners," said Minister Mahat.

He further said that Nepal, despite being poor, is striving to implement reforms and overcome the formidable challenges of development, against the backdrop of a constellation of unfavourable external and domestic events.

Nepal requires substantial external aid to support its development efforts. More so now when security spending is growing while the development demands are also increasing, Minister Mahat said, adding "Nepal also needs flexible budgetary support to protect its core development priorities. The only alternative to increased external support is to increase the domestic borrowing which we want to avoid as much as possible in the interest of a macro-economic stability which we have been able to achieve after years of prudent policy, Dr. Mahat said.

Minister of State for Finance Bharat Kumar Shah underlined the need for external support to overcome the challenges in the economic development in the country.

Vice President of the World Bank Mieko Nishitmizu underlined the need for introducing balanced development in Nepal. However, strong commitment is required to battle poverty and inequalities in the country. There is a vast disparity, she said adding "On the one hand, one can feel that there is an abject poverty just 15 kilometers away from Kathmandu, on the other, people in the capital city seem quite affluent." Nepal is poor in terms of means not in terms of mind, she said.

She also expressed her strong belief that Nepal would come up with new commitments to battle poverty and provide equal economic opportunities to all.

Secretary at the Ministry of Finance Bimal Prasad Koirala expressed confidence that the NDF-2002 meet would help streamline the Nepalese economy which is reeling under uncertainties.

Joint Secretary at the Ministry of Finance Madhav Prasad Ghimire, while extending a vote of thanks, said that the NDF-2002 meet being held for the first time in Nepal would help identify the issues facing the country more closely.

The plenary session, which kicked off today, will continue here till tomorrow. The donors and top officials will meet in Pokhara on Wednesday and Thursday.

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