MoF engages development partners on Nepal’s economic priorities

KATHMANDU: The Ministry of Finance on Friday (September 26, 2025 / Ashoj 10, 2082 BS) held a high-level interaction with Nepal’s bilateral and multilateral development partners, diplomatic representatives, and UN agencies to discuss the country’s evolving economic direction under the new interim government.

The meeting, chaired by Finance Minister Rameshwor Prasad Khanal, focused on Nepal’s recent political changes, the government’s immediate economic priorities, and measures being taken to restore confidence following months of disruption caused by political movements.

Minister Khanal thanked development partners for their “remarkable contribution” to Nepal’s economic and social progress. He underscored that the interim government, formed after the recent transition, is committed to transparency, accountability, good governance, and building a corruption-free society in line with the aspirations of Nepal’s youth.

He further noted that the recent political movements had caused significant economic damage across both public and private sectors. To address this, the government plans to advance reconstruction by prioritizing cost-cutting measures, austerity practices, and accelerated economic reforms.

Representatives of development partners, including the UN Resident Coordinator, UNHCR, and ambassadors of Japan, South Korea, the United Kingdom, Switzerland, Finland, and Australia, along with delegates from India, Norway, the European Union, and the World Food Programme, expressed solidarity with Nepal’s current trajectory.

They acknowledged the government’s commitment to reforms and affirmed continued cooperation. Development partners highlighted their readiness to sustain ongoing projects and extend support for new programs aligned with Nepal’s development priorities.

Diplomatic envoys also emphasized the importance of ensuring stability, promoting good governance, and creating a favorable environment for investment and aid mobilization. They welcomed the government’s focus on youth-driven aspirations, institutional reforms, and rule of law, while noting that the continuity of projects and accountability mechanisms would be vital for donor confidence.

The interaction comes at a crucial time as Nepal seeks to regain economic momentum, address fiscal pressures, and attract foreign investment alongside international development assistance. By engaging with the donor community, the Ministry of Finance has sought to strengthen trust and ensure coordinated efforts in supporting Nepal’s reconstruction, reform, and long-term growth agenda.

At the close of the meeting, Minister Khanal reaffirmed Nepal’s commitment to working hand-in-hand with partners, noting that the government’s approach is built on collaboration, efficiency, and reform-driven development.

This dialogue with development partners is expected to set the foundation for enhanced cooperation and resource mobilization, helping Nepal navigate the immediate economic challenges while pursuing a broader vision of sustainable and inclusive growth.