World Bank to provide Rs. 6.5 b to combat Nepal's poverty

Nepal government and the World Bank have finalized an agreement on World Bank's support for Nepal's poverty alleviation, a media report said.

The World Bank has agreed to provide about Rs 6.5 billion (US $ 100 million) in grant to the Poverty Alleviation Fund (PAF) in order to assist Nepal in its fight against poverty, The Kathmandu Post daily reported on Tuesday.

According to the report, an agreement to this effect was finalized through a negotiation, held between the representatives of the Government of Nepal, PAF and the WB, that concluded last week.

The report quoted Krishna Hari Baskota, joint secretary at the Ministry of Finance as saying that the agreement would come into effect once the WB board endorses it adding that the grant has been extended for the next phase of PAF, PAF II, which is to be implemented for the next four years. 

PAF officials said that it is the bulkiest amount the WB, the principle donor of the project, has committed to the Fund, instituted in 2004 to implement the targeted poverty reduction program set in the Poverty reduction Strategy Paper (PRSP) in the 10th plan, the report said.

The government, in the budget for the current fiscal year, has also provided Rs 1.77 billion to PAF to extend its programs to 15 additional districts, raising the number of PAF covered districts to 40. The newly included districts also include the poorest districts of terai where the Madhesi movement erupted. 

The report said  PAF is also developing its long-term vision plan under which officials said the Fund would start regular poverty reduction programs in 55 districts and pocket programs in the remaining 20.

"In this context, US$ 100 million has come as the first substantial contribution towards kicking off the long-term vision plan" the report quoted an official as saying.