Development Finance Assessment for Nepal

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Nepal has made a strong commitment to the achievement of the Sustainable Development Goals, and aspires to graduate from Least Developed Country status and emerge as a middle income country. To achieve these ambitious goals, the Government of Nepal will need new strategies to improve the Government’s efficiency and effectiveness, increase the levels of finance, and strengthen the enabling environment for private sector investment and growth. In the context of the changing development finance landscape, Nepal is exploring new opportunities and ways to mobilize and manage resources, both domestic and external as well as public and private, to finance its development plans and aspirations. Against this backdrop, the Ministry of Finance commissioned this Development Finance Assessment (DFA). The DFA identifies strategies to improve efficiency and effectiveness in the utilization of existing resources, and opportunities for the mobilization of additional resources. The assessment provides an overview of Nepal’s development finance flows, and the institutions and policies that align this finance with national development priorities. It provides recommendations to enhance the alignment of finance flows to national development goals, improving the basis for achieving development results. This DFA was commissioned by the Ministry of Finance, with support from UNDP, the Asian Development Bank, and the United Kingdom’s Department for International Development.