The authorities in Nepal say the country needs substantial foreign assistance to revive the economy.

The comments have come ahead of a crucial meeting of foreign donors next month.

The authorities did not give the figures, but they said that the donors are expected to pledge extra support when they meet in the capital, Kathmandu.

The meeting of Nepal Development Forum, previously known as the Aid Nepal Group, is the first to be held in Nepal.

The event has assumed importance more for its timing than the venue.

Nepal has been facing its bleakest economic prospects in years due to the long-running Maoist insurgency and political instability.

Economic crisis

Economic growth is expected to be the lowest in more than a decade.

Tourism has been hit hard with tourist arrivals dropping by a fifth of the annual average of half-a-million.

Export earnings have also substantially dropped.

The economy has faced additional burden due to the increase in security spending, following the mobilisation of the army to tackle the Maoist insurgency.

One of the world's poorest countries with per capita income of a less than a dollar a day, Nepal depends on foreign aid for more than half of its annual budget.

Finance Minister Ram Sharan Mahat said Nepal would seek additional support at donors' meeting, in view of what he described as the current difficult situation.

More than 30 countries and multi-lateral agencies are expected to participate in the meeting.