December 23: A four-member delegation of the House of Councillors of Japan led by Katsumi Ogawa paid a courtesy call to Finance Minister DrYuba Raj Khatiwada on Friday, December 21. Other members of the delegation comprised of Noburiro Miura, Shinkun Haku and Makoto Hamaguchi, all of them members of the House of Councillors. Japanese Ambassador to Nepal Masamichi Saigo also accompanied the delegation.

According to the Ministry of Finance, the purpose of the visit was to look into the status of Japanese Official Development Assistance (ODA) to Nepal and its effectiveness.

The Japanese delegation expressed happiness to observe long and cordial bilateral relationship since 1956 and development cooperation relationship since 1969 between Nepal and Japan, reads a statement issued by the ministry.

Finance Minister Khatiwada shed light about Nepal’s policy of ODA utilization through proper budgetary system.

“Communicating Nepal’s primary intention of utilizing ODA as a stimulator to help Nepal’s progress, he stressed the need for other areas of cooperation, including through FDI, enhanced access to international trade, tourism and technology transfer,” the statement said.

During the meeting, the finance minister revealed huge financial gap in Nepal to meet the fundamental civil rights as enshrined in the constitution, graduate from LDC status by 2022, achieve SDGs by 2030 and manage transition to federalism smoothly, according to the ministry.

In this context, the finance minister mentioned four areas that Nepal will have to look for higher ODA for some years to come. Minister Khatiwada informed the delegation about Public Finance Management (PFM) reform agenda initiated by Nepal for optimization of taxpayers’ money.

Firstly, he said that Nepal has developed robust system of output-linked resource and budget allocation monitored continuously by the National Planning Commission, the Prime Minister’s Office and sectoral ministries. Secondly, Nepal has rigorous reporting and auditing system in place. Thirdly, strict scrutiny is being conducted by oversight agencies, including parliamentary committees and other surveillance agencies including anti-corruption body. Fourthly, there is a system of continuous vigilance of ODA funded projects by the Ministry of Finance, the minister told the visiting delegation.

Against this backdrop, the finance minister urged the delegation to scale-up Japanese cooperation in post-earthquake rehabilitation and reconstruction, in education and health, and in infrastructure development. He also urged for the people-to-people relationship to be enhanced through higher level of air connectivity between the two countries.

The delegation, according to the ministry, expressed happiness to listen to the finance minister’s highlights on ODA policy and the ongoing reform initiatives.