Finance Minister Khanal engages U.S. and global donors for trade, investment push

KATHMANDU: Finance Minister Rameshwar Prasad Khanal, who is currently in Washington D.C. to attend the annual meetings of the World Bank and the International Monetary Fund (IMF), has held a series of high-level discussions with senior U.S. officials and representatives from major donor agencies to enhance trade, investment, and development cooperation with Nepal.

According to the Ministry of Finance, on October 15 (Aswin 29), Minister Khanal met with the United States Trade Representative (USTR) to discuss strengthening bilateral trade and investment relations between Nepal and the United States. During the meeting, he urged the U.S. side to extend the Nepal Trade Preference Program (NTTP), which provides preferential access for Nepali products in the U.S. market, and highlighted the importance of continuing the trade incentives to support Nepal’s export competitiveness and industrial growth.

Minister Khanal also held separate discussions with officials from the U.S. State Department, focusing on enhancing Nepal–U.S. bilateral relations, promoting mutual cooperation, and expanding collaboration in areas of shared strategic and economic interest. Both sides exchanged views on how to deepen long-term partnerships in trade, infrastructure, and sustainable development.

In addition to U.S. engagements, Minister Khanal met with representatives from the Saudi Fund for Development and the Japan International Cooperation Agency (JICA), where he emphasized Nepal’s growing need for investment in infrastructure, hydropower, irrigation, and human capital development.

The Saudi Fund representatives assured that their institution would continue investing in Nepal, particularly in irrigation and hydropower projects, as part of its long-term development cooperation framework.

Similarly, during his meeting with JICA officials, discussions centered on the early completion of key infrastructure projects, including the BP Highway Restoration Project, the Nagdhunga Tunnel Road, and the Koteshwar Section Development Project. Minister Khanal expressed Nepal’s appreciation for Japan’s continued technical and financial assistance and called for accelerating project execution timelines to improve connectivity and logistics efficiency.

Later the same day, Minister Khanal also held a meeting with IMF Asia and Pacific Department Director Krishna Srinivasan to review the progress of Nepal’s Extended Credit Facility (ECF) program supported by the IMF. The discussions focused on maintaining financial stability, continuing structural reforms, and ensuring effective implementation of the ECF framework.

The two sides exchanged views on the need for amendments to the Nepal Rastra Bank Act, assessment of commercial banks’ loan portfolios, and the introduction of stronger policy mechanisms to safeguard financial stability. Nepal Rastra Bank Governor Bishwanath Paudel was also present during the meeting.

The Finance Ministry stated that Minister Khanal’s meetings in Washington D.C. are part of Nepal’s broader diplomatic and economic engagement to strengthen multilateral ties, expand donor cooperation, and attract foreign direct investment (FDI) in priority sectors such as energy, infrastructure, and human development.

Observers say these high-level discussions could help Nepal secure long-term financial partnerships, promote export diversification, and improve access to concessional financing for national development projects.