Nepali Times Asian Paints
From The Nepali Press
IMF



One of the key partners in Nepal's development process, the International Monetary Fund has pressured the government to take appropriate measures for the establishment of peace. It has suggested that the government's attention should be shifted to the fact that poverty alleviation efforts would be unsuccessful until and unless there is progress in the political and security situation. The IMF's latest suggestion has come under its regular assessment of its member countries.

The fund's message is politically soft but has an economic message and between the lines the statement is uncharacteristically strong. The IMF's conclusion is that the king's speech talked about financial irregularity while in practice the economic structure of the country has turned into shambles in the last one year. It has also concluded that the donors and the international community have been kept in
the dark and the government's non-transparent activities are on the rise.

After the king took over one year ago, the directors of the IMF had called a meeting on 9 March and had warned in black and white that the donors would not continue their assistance if the government did not commit itself to three main programs: financial sector reform, implementation, and creation of an environment so that the donors funding the poverty alleviation could continue their assistance.
Under the financial sector reforms, immediate actions against wilful defaulters in the financial sector, privatisation of the public enterprises that have become burdensome for the state's coffer and pricing of petroleum products at par with the international market were the issues prioritised by the IMF.

The commitment toward the financial sector reform and fiscal discipline in the 21-point royal promulgation was basically aimed at making the donors positive toward the royal regime. But the donors don't seem satisfied with its written commitment to the World Bank and the IMF. The IMF's role is important in any country because other donors make their decision whether or not to continue their assistance after making sure if there is the fund's presence. Moreover, the donor community heavily relies on the IMF for the economic indicator of the country.



LATEST ISSUE
638
(11 JAN 2013 - 17 JAN 2013)


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