As the country is passing through an unprecedented crisis, officials prepare to win over the donor community

February 4-7 is going to be no less than an arduous battle for the Nepalese officials. The next month's meeting of the Nepal Development Forum, previously known as Nepal Aid Group meeting held in Paris, is the first to be held in Nepal. The event has assumed importance more for its timing than the venue. Nepal has been facing bleakest economic prospects in years due to the long-running Maoist insurgency and political instability. The economic growth this year 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 declined. The economy has faced additional burden due to sharp increase in security spending, following the mobilization of the army to tackle the Maoist insurgency.

Foreign aid has been crucial to finance annual budget of Nepal contributing to nearly two-thirds of the total development spending. Kicking off a series of consultation meetings on the eve of the crucial meeting last week, Finance Minister, Dr. Ram Sharan Mahat, said that Nepal would seek additional support in the next month's donors' meeting, in view of the current difficult situation. More than thirty countries and multi-lateral agencies are expected to participate in the meeting.

Minister Mahat said the government would also seek overall support to the Poverty Reduction Strategy Paper and the Tenth Plan (2002-07) from the donors during the NDF meet. The NDF meet will also review the Priority Reform Actions (PRAs) committed by the government during the last held in Paris in April 1999. "There have been significant progress in meeting most of the commitments made by Nepal in the Paris meet," said Dr. Mahat. The donors, on their part, have expressed concerns over poor aid utilization capability in the country, deteriorating law and order situation and orruption, to name a few. It's, indeed, a tough time for the officials to come up to the mark in the NDF meet, which will take place in Kathmandu and Pokhara.