Kathmandu: Quake-hit Nepal needs fund equivalent to one third of its economy to recover from the deadly disasters which killed nearly 9,000 people, according to a World Bank report released on Tuesday.
"An assessment of the impact of a recent earthquake and major aftershocks shows that Nepal's recovery needs amount equivalent to one third of its economy," a statement issued by the World Bank, Nepal office said.
The damage to the economy will require sustained financial support and effective recovery programmes to create a more resilient Nepal and to target support at those most in need, the World Bank said.
"A donor conference on June 25 must provide Nepal with sustained support to repair the economic damage and to prevent more people from falling into poverty," said the World Bank in response to the Government of Nepal's announcement of the key result of its Post Disaster Needs Assessment (PDNA).
The PDNA prices the damage at USD 5.15 billion, losses at USD 1.9 billion and recovery needs at USD 6.6 billion, roughly a third of the economy.
Early estimates suggest that an additional 3 per cent of the population has been pushed into poverty as a direct result of the earthquakes. This translates into as many as a million more poor people.
"The economy of Nepal took a huge hit from these earthquakes and there is a danger that many of the country's impressive gains in overcoming poverty could be reversed unless this challenge is addressed in a decisive way," said Annette Dixon, Vice President for the South Asia Region at the World Bank.
"The country needs resources to pay for the recovery that can be channeled through credible programs to make itself more resilient to the next natural disaster and ensure that those most in need receive the help they deserve," Dixon said.
The donors conference on June 25 is being organised by the government of Nepal to coordinate efforts among its partner governments and organisations involved in the reconstruction effort.
The PDNA, led by the Nepal and supported jointly by the Asian Development Bank, European Union, Government of Japan, United Nations and the World Bank, will inform the discussion by highlighting the extent of the damage to the economy - and suggesting how to help the country recover.
Meanwhile, the Ministry of Home Affairs has stated that the major portion of the funds provided in the name of earthquake victims is spent by donor countries and international agencies on their own staff.
The ministry has also found that such money doesn't have any impact on the real victims because the maximum amount of human resources used in rescue and relief distribution comprised foreign nationals.
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