Nepals economic relationship with other countries get started since 1951 AD. Nepal have been assisted by different Bilateral and multilateral foreign aid. Nepal have economic relationship with organization like World bank, International Monetary Fund (IMF), Asian Development Bank (ADB), Saudi Fund, Kuwati Fund. These fund have been organizing several programs to enhance economy, education, health, technology, infrastructure and so on.
Among Nepals economic relationship with other countries, Japan is the top most donor as well as helping country. Where as India is among the SAARC countries. Assistance of different countries are mainly in two forms, Grants and Loan. Nepal dont have to return the grants where as loan should be paid back within prescribed time and interest.
Back in 1951 AD (2008 BS) USA had granted 22 thousand rs during point four program. Nepal has been receiving grants from first five year planning and loan from second. In 2059 BS Nepal has formulated a law regarding foreign assist as “Baidesik Sahayeta Niti 2059”.
Folowing are the dates of Nepals economic relationship with other countries and organization.
- World Bank – September 6 1961
- International finance corporation – October 17 1963
- International Development Association(IDA) – 1968
- Asian Development Bank(ADB) – 1968
- European Union (EU) – 1975
- SAFTA – September 28 1993
- BIMSTEC – 2003
- General Agreement on Tariffs and Trade (GATT) – 1947 October 30
Note : Economic Commission for Asia and Far East(ECAFE) is the first organization that Nepal took membership in order to enhance Nepals economic relationship with other countries.
World Trade Organization (WTO) – January 1 1995
Trade in goods, Trade in Services and Trade related aspects of intellectual property Rights are the major working areas or World Trade Organization. Following are the philosophy of world trade organization for fair trade.
- Non- discrimination treatment. i) Most Favored Nation (MFN) ii) National Treatment
- Free Trade.
- Predictability and Transparency.
- Special and Differential treatment for Developing and least developing countries.