The international donor community in Nepal has welcomed the government’s step of presenting the budget through an ordinance, claiming a crisis has been averted. In a joint statement released on Tuesday by USAID on behalf of various foreign donors in Nepal, concerns were also expressed about the prolonged political deadlock. The statement urged the leaders to form a new government at the earliest and speed up constitution-writing and the peace process. It also requested the leaders to reorient their priorities towards development and the economy, fill key vacant positions, and improve the security environment in the country.

The donors also highlighted how the stalemate in the country has limited their ability to invest in development initiatives in Nepal. “The slow pace in implementing the peace process, combined with the continued caretaker status of the government, and lack of development leadership, significantly reduces most donors’ ability to secure future resources for Nepal,” the statement reads.

The government should create better working conditions for the donor community if it wishes foreign aid to be utilised effectively, the statement says.