6. Long-term aid priorities

6.1 Due to the limitations of human, financial and other means, Nepali cannot afford an unlimited number of investments. Therefore, it is necessary for Nepalese to be careful while making policy decisions regarding investment. In this context, the guidelines of the long-term foreign aid policy do not seem to be significantly different from the short-term policy.

6.2 Foreign aid must flow to the national priority areas and sub-areas determined by the government. These sectors are mainly as follows:-

Infrastructural development (energy, transport, tourism, science and technology), agriculture, irrigation, forestry and environment, human resources and social development, education, health and population and poverty alleviation. Focused special activities like:- Employment promotion and development of backward areas etc. Under these broad areas and topics, there is a need to emphasize rural infrastructure development, such as rural electrification, rural roads and transport, micro-irrigation, agricultural extension and crop diversification, basic and primary education, public health, water supply and population problem solving, etc. In particular, to achieve the objectives of poverty alleviation and economic growth, and to enhance capacity, it is necessary to flow foreign aid to these sectors and sub-sectors. It also needs to be done. Likewise, the flow of foreign aid should be coordinated with the implementation of the economic reform program, so that such reform program should be implemented in such a way that it gets more strength. Priority projects will be selected based on a predetermined objective process.

6.4 Naturally, the priority areas are interlinked with respect to the subjects related to them. In identifying assistance to maximize the benefit of assistance received for priority sectors and sub-sectors, achievements in one sector and sub-sector will be reflected in other sectors.The impact that can be made on the region and sub-region will be taken into consideration, so that the support received in one region will benefit the other region and sub-region as well. For the proper use of foreign aid, it is necessary to pay attention to ensuring complementarity and interconnection between projects and programs in terms of policy and to ensure that maximum benefits can be obtained from such cooperation. In the current situation, most of the foreign aid is focused on specific projects and programs and has been distributed in a fragmented manner. In order to solve this problem, a policy will be taken to flow foreign aid according to a comprehensive and integrated concept. For this, projects and programs will be formulated keeping in mind the issues that are relevant in all areas such as gender issues, environment and administrative reforms that affect poverty alleviation. But the government will not encourage separate projects on such issues. However, special programs for targeted areas and groups in the areas of gender issues, environment and government reforms may be implemented. These issues will be considered as an integral part of priority projects instead of being considered as the main focus of foreign aid investment. An important goal of foreign aid policy will be to find interrelationships between various aspects of development while mobilizing foreign aid.

6.5 Not only meeting the need for "development investment" in priority areas within the sectoral structure, but also taking maximum advantage from the existing structure. Efforts will be made to flow foreign aid by paying attention to the need for expenses. Donors will be encouraged to channelize aid towards sectoral needs, while the government will bear the operational costs of Salvasali. As mentioned above, the main projects and development activities in each prioritized area will be identified and carefully evaluated by placing them in the sectoral priority order. So that the donors can choose the projects in the designated area.