Nepal deepens economic diplomacy: Finance Minister Khanal engages ADB and IMF leaders in Washington

KATHMANDU: Nepal’s Finance Minister Rameshwar Prasad Khanal held a high-level meeting with Asian Development Bank (ADB) President Masato Kanda in Washington DC on October 16, on the sidelines of the World Bank and International Monetary Fund (IMF) Annual Meetings. The discussion focused on enhancing development cooperation, promoting private sector investment, and expediting infrastructure projects in Nepal.

During the meeting, Minister Khanal lauded the ADB’s long-standing support for Nepal’s infrastructure development, particularly in areas such as energy, transport connectivity, and urban development. He emphasized that the current government is fully committed to creating an investment-friendly environment for both domestic and international investors.

Minister Khanal also extended a formal invitation to ADB President Kanda to visit Nepal, highlighting ongoing major ADB-financed infrastructure projects across the country.

ADB President Expresses Interest in Visiting Nepal

In response, ADB President Masato Kanda expressed appreciation for Nepal’s invitation and acknowledged the progress Nepal has made in governance and political stability. He showed keen interest in visiting Nepal at an appropriate time, while reiterating ADB’s continued commitment to supporting Nepal’s inclusive and sustainable economic growth.

President Kanda also inquired about Nepal’s recent political transitions and good governance initiatives, emphasizing the importance of maintaining institutional integrity to strengthen economic performance.

Minister Khanal Calls for Investment in Hydropower and ICT Infrastructure

Later, Minister Khanal participated in the Southeast Asian Governors’ Meeting of the World Bank and IMF, where he urged the global institutions to increase investment in Nepal’s hydropower sector and information technology infrastructure. He underlined Nepal’s immense potential in renewable energy generation, particularly hydropower, as a sustainable driver for regional energy trade and green economic growth.

Minister Khanal pointed out that delays in the implementation of large-scale development projects remain a challenge and urged the World Bank to simplify project implementation guidelines and procedures to accelerate progress. He stressed that streamlining approval and disbursement mechanisms would help ensure more efficient utilization of foreign aid and concessional financing.

Call for Context-Sensitive Financial Standards

In his remarks to IMF officials, Minister Khanal highlighted the importance of global financial stability while emphasizing the need for context-sensitive regulatory frameworks. He stated that while developing international financial standards is crucial, local contexts and national priorities must also be considered during implementation.

“The creation of global benchmarks is essential for stability,” Minister Khanal said, “but those benchmarks must remain flexible enough to accommodate the unique economic and financial realities of developing countries like Nepal.”

The meeting was also attended by Nepal Rastra Bank Governor Bishwanath Poudel, who underscored Nepal’s commitment to maintaining monetary stability, enhancing liquidity management, and ensuring a resilient financial sector through coordinated fiscal and monetary measures.

Nepal’s Growing Engagement with Global Financial Institutions

Nepal’s participation in the World Bank–IMF Annual Meetings reflects its continued efforts to strengthen partnerships with multilateral development institutions such as ADB, the World Bank, and IMF. These interactions are expected to boost investor confidence, attract foreign direct investment (FDI), and align Nepal’s national development strategies with global economic trends.

Analysts note that such high-level engagements are crucial for Nepal’s post-pandemic economic recovery, especially as the country seeks to accelerate infrastructure modernization, digital transformation, and energy export initiatives.