New foreign aid policy in offing

KATHMANDU, Feb 2:

The government is preparing to introduce a new ´Development Cooperation Policy-2014´ within a month.

The new policy will replace the existing Foreign Aid Policy-2001, according to officials. According to government officials, the Ministry of Finance has already forwarded the draft of the new policy to stakeholders after holding consultations with donor agencies some two months ago.

Addressing an interaction on ´Roles of government bodies and stakeholders in promoting the economic diplomacy´ Minister for Foreign Affairs Madhav Ghimire on Saturday said that the government is currently working to introduce the Development Cooperation policy.

The interaction was organized by the Ministry of Foreign Affairs.  "The MoF is currently working to bring a new foreign aid policy, which will replace the policy introduced in 2001," Minister Ghimire said.

He said that they need an updated foreign aid policy to address many emerging issues related to the foreign aid. Finance Secretary Shanta Raj Subedi told Republica that they were collecting feedbacks from the line ministries on the draft. “It is likely to take one month to endorse the policy," Subedi said.

Subedi underlined that the new policy will help bring in foreign aids, loans and grants through the formal government channel. "This will end the practice of International Governmental Organizations (INGOs) and Non-Governmental Organizations (NGOs) receiving donations directly from the foreign governments and donor agencies,” added Subedi.

However, some specific bilateral agreements will not be affected by the new policy.  The policy incorporates separate sector-wise analysis on foreign aids, concessional loans and grants. "We will not accept supports and grants in small amount from foreign countries," Subedi added. The next government is expected to endorse the policy.

Meanwhile, Minister Ghimire also underlined the need to promote economic diplomacy.  “The high-level coordination committee has directed Nepal´s diplomatic missions abroad for promoting economic diplomacy," said Minister Ghimire, who chairs the committee.

The foreign minister further informed that a working committee has also been formed in Nepali missions under the chairmanship of ambassadors for promoting economic diplomacy.  "MOFA is preparing to introduce a new guideline to recognize economic diplomacy in systemic way," added the minister.

Source: Republica