In their first meeting with senior officials after the return of democracy in the country, Nepal’s leading bilateral and multilateral donors have pledged their support towards peace-building and ambitious economic reconstruction programme proposed by the new Seven Party Alliance (SPA) government but have also asked the government to come up with its priorities and concrete programmes.

Addressing the meeting called by Finance Minister Dr. Ram Sharan Mahat at the Finance Ministry on Wednesday on behalf of eight donors, chief of the Department for International Development (DfID), Mark Mallalieu, deliberated on the impact of conflict on the development programmes. He said there was urgent need to widen the development space, which has been narrowed by the decade-old conflict. If we could deliver now, people’s confidence in peace process will increase, said Mallalieu. He also urged all the donors to support the peace process being initiated by the Nepal government.

Country director of the World Bank in Nepal, Ken Ohashi, expressed concerns over the expiry of the Poverty Reduction Growth Facility (PRGF). He also asked the government to come up with detailed programmes and policies formed on the basis of consensus. Chief of the International Monetary Fund (IMF) in Nepal, Sukhwinder Singh, said the expiry of PRGF in the four months time could have serious implications on the reform process.

US ambassador to Nepal, James F. Moriarty, said the US was keen to see a successful transition of democracy in Nepal. He, however, raised suspicion over Maoist activities even after the announcement of ceasefire.

Resident coordinator of the UN system in Nepal, Matthew Kahane, said the United Nations was ready to support the government in its endeavours towards restoring peace and stability in the country. He expressed hope that negotiations between the government and Maoist rebels would be concluded effectively.

Ambassador of Denmark, Finn Thilsted, announced that the Danish government would restart the rural energy programme amounting to Rs 1.5 billion, which was suspended earlier. He said his government was ready to provide an additional Rs 500 million to support peace process and demobilization of army and the Maoists in Nepal.

Most of the donor representatives expressed the need to include the development agenda in the talks with the Maoists. They also empahsised on both the government and the Maoists to respect the Basic Operating Guidelines agreed upon earlier by the development partners in Nepal.

Earlier, in his presentation, Finance Minister Dr. Ram Sharan Mahat, presented the difficult economic situation the country was facing at present and urged the donors for both immediate budgetary support and long-term commitment towards reconstruction and rehabilitation programs. He also expressed commitment that the government would continue economic reforms programmes with due priority.

Finance Ministry officials said a follow-up meeting with the donors will be organized within a fortnight and that the government will come up with some concrete programmes by then.

Commenting on the meeting with donors, former finance minister and UML leader Bharat Mohan Adhikary said it would have been better if the finance minister had consulted SPA leaders before the meeting. He said he would be also raising the issue in the parliament.

Meanwhile, Kantipur daily reported Thursday that the government of India has prepared a “special economic package” for Nepal as a gesture of its continued support towards democratic forces in Nepal. The daily quoted a source in the Indian government in New Delhi as saying that India was preparing to announce the package during the forthcoming visit of Prime Minister G P Koirala to India. “We, however, don’t want to show that India is imposing its aid on Nepal,” the source said. The date of Koirala’s visit is yet to be announced.

Earlier, reports said that the Indian aid— referred to as the “Himalayan Marshall Plan” — — would carry a purse of Rs 620 million. India has also released payments due to Nepal under the duty refund procedure (DRP).