‘Nepal’s growth projection is likely to be revised downward’


has not been spared by the huge economic toll of the pandemic that has upended every aspect of life in general. Against the backdrop of the deadly virus not only halting the progress but even reversing the achievements of the past years, , the country director for Nepal, Maldives and Sri Lanka, shared with his insights on the current scenario, the challenges ahead, among other issues. Excerpts:

What is your analysis of the evolving COVID situation in Nepal? Are you satisfied with the response to the pandemic and the measures put in place to mitigate its impact?

Nepal’s health response capacity has definitely increased with the expansion of laboratory capacity for testing and allowing the private sector for diagnosis and treatment. At the same time, considering the rising number of new cases in the country and in valley, the existing human resources capacity seems to be under tremendous pressure.

While the government is trying its best to improve its health sector response, more needs to be done towards case investigation and contract tracing, extending testing at the community level, human response mobilisation at sub-national levels for community engagement, and protecting frontline workers and their families. Also, the public has an equal role to play by practising social distancing, wearing masks, and hand-washing, and by cooperating with the response teams for contact tracing.

As part of the economic response, the immediate relief and fiscal and monetary measures undertaken by the government are commendable. We hope that the government’s broader relief, restructuring and resilient recovery plan supported by development partners, including the World Bank, will help further mitigate the impacts of the pandemic on the country’s and people’s livelihoods.

During the launch of the ‘Youth Employment Transformation Initiative’ project, concerns were raised about misuse of funds for aligning it with the Prime Minister Employment Programme. Can you give any update on the project?

The implementation of the Prime Minister Employment Programme (PMEP) and the Youth Employment Transformation Initiative (YETI) project is primarily the responsibility of the local levels. Funds allocated to the local levels under the YETI project were sent to all the 753 local levels as conditional grants together with directives prior to the local level planning process. The conditional grants include financing for cash benefits for 100 days of work to 100 of the most vulnerable unemployed in each local level. The project also supports the addition of capacity in each employment service centre for which the process to hire project-financed technical assistants has started at the local levels. This additional support will help the local levels and the employment service centres to manage and monitor local level activities, its funds and ensure quality and transparent implementation. Despite the challenges, the Ministry of Labour, Employment and Social Security has also begun orientation of the local levels virtually, which will cover all the local levels in a phased manner.

As part of the response to COV- ID-19, the government has expanded the coverage of the PMEP to reach 200,000 unemployed individuals this fiscal year which include those most affected by the pandemic, such as unemployed migrants and returnees. The World Bank’s support will help ensure there is a robust monitoring information system to support planning, management, and monitoring of the activities and the finances. The system is also developed to ensure a transparent prioritisation of those registered, so that the most vulnerable unemployed get the opportunities first.

Are there any areas in which the World Bank is mulling over further support to help Nepal tackle the ongoing pandemic and the rising number of cases in the country?

Our immediate health response to the pandemic in Nepal is through a $29 million IDA credit for the Nepal COVID-19 Emergency Response and Health System Preparedness Project to strengthen national systems for public health preparedness in the country. Our ongoing portfolio is being repurposed and restructured, which will make available $310 million for COVID-19 relief and recovery efforts, while more than $100 million has been disbursed as advances from o

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