World Bank VP Johannes Zutt Concludes Nepal Visit, Pledges $2.7B Support

The World Bank Vice President for South Asia, Johannes Zutt, has completed his first official visit to Nepal since assuming the role on July 1, 2025, reaffirming the Bank’s long-term commitment to supporting Nepal’s development priorities. The five-day mission focused on strengthening partnerships, reviewing progress in key sectors, and discussing the Bank’s new Country Partnership Framework (CPF) 2025–2031, which outlines an ambitious $2.7 billion support package.

High-Level Engagements

During his visit, Zutt held meetings with senior officials, including:

• Bishnu Paudel, Deputy Prime Minister and Minister of Finance

• Prakash Man Singh, Deputy Prime Minister and Minister of Urban Development

• Dr. Biswo Poudel, Governor of Nepal Rastra Bank

He also met with representatives from the private sector, civil society, and development partners, highlighting the Bank’s integrated approach to supporting Nepal’s growth.

“It is truly a pleasure to come back to Nepal after 10 years to see the progress made in consolidating peace, improving services, ending load-shedding, and recovering from the 2015 earthquake and the COVID-19 pandemic,” Zutt said.

He praised Nepal’s resilience and progress in areas such as agribusiness, tourism, and information technology, while stressing the importance of continued reforms to sustain these achievements.

Country Partnership Framework 2025–2031

The new CPF aligns closely with Nepal’s 16th National Plan and concentrates on two strategic priorities:

1. Job creation – fostering an environment for investment and entrepreneurship, particularly in tourism, agribusiness, and digital development.

2. Disaster resilience – strengthening Nepal’s ability to respond to and recover from climate-related disasters, earthquakes, and other shocks.

Under the CPF, the World Bank Group will make about $2.7 billion available between 2025 and 2031. This includes financing from both the International Development Association (IDA) and International Finance Corporation (IFC) to support public and private sector growth.

Youth Employment Challenge

One of the central themes of Zutt’s visit was employment generation. With approximately 500,000 young people entering Nepal’s labor force each year, the country faces immense pressure to create sustainable, high-quality jobs.

“The urgency to create jobs that lift families out of poverty and drive sustainable development has never been more critical,” Zutt noted. “We remain focused on working with the government, entrepreneurs, and other stakeholders to support reforms and bring investments that will unlock job-creating growth.”

Building on Past Partnerships

Zutt’s visit to Nepal also carried a personal dimension, as he previously served as the World Bank Country Director for Nepal between 2013 and 2015. His return highlighted continuity in the Bank’s engagement and an opportunity to reflect on Nepal’s trajectory since the devastating 2015 earthquake and the subsequent years of recovery.

During his earlier tenure, Nepal launched critical reforms in energy, finance, and governance, laying the groundwork for the progress seen today, including the end of chronic electricity shortages.

Looking Ahead

The World Bank has long been one of Nepal’s most important development partners, supporting infrastructure, education, agriculture, and health reforms. The new CPF’s focus on climate resilience, competitiveness, and inclusion signals a strong alignment with Nepal’s long-term goals of middle-income status and sustainable development.

With climate change and demographic pressures intensifying, Zutt’s visit underscored the need for partnership-driven solutions that address both urgent and structural challenges.

“Nepal has shown resilience and determination in the face of adversity. With the right reforms and investments, it has the potential to achieve inclusive, job-rich growth that benefits all its citizens,” Zutt concluded.