Finance Minister Wagle to meet US Treasury Secretary, World Bank President

Nepal’s Finance Minister Swarnim Wagle arrived in Washington DC on Sunday night to discuss expanding economic cooperation, post-flood reconstruction efforts, and strategies to attract foreign investment. Leading a two-member delegation, he was welcomed by Sharad Raj Aran, the Chargé d’Affaires at the Nepali Embassy in Washington, along with other embassy officials. Minister Wagle is scheduled to hold high-level meetings on Monday with US Treasury Secretary Scott Bessent and Ajay Banga, the President of the World Bank Group.The Nepali government estimates that Rs 723.31 billion is required for reconstruction following the devastating Bhote Koshi River flood in Rasuwa on Bhadra 10. A report released on Bhadra 25 (BS) by the National Planning Commission and the National Disaster Risk Reduction and Management Authority (NDRRMA) indicates that infrastructure rehabilitation alone will cost an estimated Rs 473.57 billion, accounting for 75 percent of the total disaster recovery funds needed.Specifically, the energy and grid system rehabilitation is projected to require Rs 390.62 billion. Malaysia has already provided USD 1 million in financial assistance for the reconstruction of areas affected by the Bhote Koshi flood, as announced by Malaysian Foreign Minister Dato’ Seri Utama Haji Mohamad bin Haji Hasan on Ashoj 28 (BS).The NDRRMA reported on Kartik 5 (BS) that 1,455 bodies have been recovered from the Bhote Koshi-Trishuli flood, with 5,285 people still missing. The Prime Minister’s Disaster Relief Fund has collected over Rs 17 billion. Of this, Rs 1 billion has been disbursed to the NDRRMA’s account, with Rs 370 million sent to various districts, according to Dharma Raj Upreti, the NDRRMA’s Executive Chief, on Kartik 5 (BS).Nepal’s total stock of foreign direct investment (FDI) increased by 11.8 percent to Rs 295.50 billion by the end of fiscal year 2079/80, according to Nepal Rastra Bank, the central bank, on Bhadra 14 (BS).India accounts for the largest share of FDI in Nepal at 35 percent (Rs 103.45 billion), followed by China at 12 percent (Rs 35.46 billion), Ireland at 7.7 percent (Rs 22.62 billion), Australia at 6.4 percent (Rs 19.06 billion), and Singapore at 6.4 percent (Rs 18.81 billion). Industrial sectors receive 59.7 percent of total FDI, while the service sector accounts for 40.2 percent. Within the industrial sector, hydropower attracts 30 percent and manufacturing 29.4 percent. Banks, financial institutions, and insurance companies within the service sector receive 26 percent of the total FDI.Madhesh Province has a comparatively low share of FDI, at 8.8 percent, trailing Bagmati Province (58.7 percent), Gandaki Province (15.1 percent), and Koshi Province (14.7 percent), as per Nepal Rastra Bank data from Bhadra 14 (BS). The Madhesh Province Police Office in Janakpurdham reported on Ashoj 14 (BS) that six people died, two are missing, and eight were injured due to floods in Madhesh. The floods caused Rs 5.6 million in damage and killed nine livestock across eight districts in the province.The Nepali government has outlined a two-phase reconstruction plan: immediate relief and short-term reconstruction within the next six months, estimated at Rs 8.73 billion, and long-term reconstruction, projected to cost Rs 714.58 billion, according to the Bhadra 25 (BS) report.Nepal and the World Bank Group’s International Bank for Reconstruction and Development (IBRD) signed a mandate agreement on Ashoj 29 (BS) to study the feasibility of developing a ‘Catastrophe Bond’ to protect against natural disaster risks. This collaboration aims to help Nepal transfer a portion of its natural disaster risk to international capital markets and strengthen financial preparedness for such events. Relief will be provided to affected families once the legal status of long-missing individuals is finalized.