Kathmandu expects over $2 billion in loans and grants from Delhi

Kathmandu is seeking an economic package worth more than $2 billion comprising lines of credit and grants from New Delhi as Prime Minister Balendra Shah prepares to visit India later this month. To lay the groundwork for the prime minister’s visit, Indian Foreign Secretary Vikram Misri is visiting Kathmandu on Wednesday.

During his visit, Misri is expected to indicate the possible scale of the economic package that Kathmandu is seeking from New Delhi, two senior officials at foreign and finance ministries told the Post. A preliminary proposal was presented during Finance Minister Swarnim Wagle’s visit to India in September.

However, a detailed breakdown of the proposed package, including the projects for which Indian assistance would be sought, is expected to be communicated during Misri’s visit. Negotiations on the package are expected to conclude and an announcement is likely during the prime minister’s visit to India, a finance ministry official told the Post.