Banking News – The global political landscape has been in turmoil since Republican leader Donald Trump won the U.S. presidency. On January 20, the day he assumed office, Trump withdrew the United States from the World Health Organization (WHO) and the Paris Climate Agreement, sending shockwaves across the international community.

Since then, Trump has continued to introduce bold and controversial policies, including proposals to annex Canada as the 51st U.S. state, purchase Greenland, regain control over the Panama Canal, and establish American dominance in Palestine. He has also been strategizing to secure Ukraine’s mineral rights.

In a major budgetary shift, Trump’s administration has already shut down the United States Agency for International Development (USAID), which accounted for about 1% of the U.S. annual budget. This move is expected to save around $40 billion annually. Similarly, pulling out of the WHO is estimated to save the U.S. an additional $500 million each year. The U.S. has also stopped providing financial aid to various countries as part of its cost-cutting measures.

Now, in what could be another major global shake-up, reports indicate that the U.S. is planning to withdraw from the World Bank and the International Monetary Fund (IMF). According to The Times of India, Washington has initiated steps to disengage from these two key financial institutions. Notably, the U.S. Treasury Secretary was absent from the recent G20 meeting, further signaling a shift in American policy. Experts are now speculating that such a move could trigger an economic crisis worldwide.

Implications for Nepal and Other Developing Nations

If the U.S. follows through with its withdrawal, the very existence of the World Bank and IMF—two institutions that emerged after World War II—could be at risk. This would have a direct impact on developing countries like Nepal, which have relied heavily on concessional loans and grants from these institutions for infrastructure projects and policy development.

Nepal has been receiving financial support from the World Bank and IMF to fund various development programs. However, if the U.S. pulls out, the risk of these funds being discontinued will increase significantly.

For the current fiscal year, Nepal had set a target to receive over Rs 52 billion in grants. However, only 17% of this amount has been received so far, with the Office of the Auditor General reporting disbursements of around Rs 9 billion to date. A U.S. withdrawal could further reduce this already shrinking inflow of financial aid.

Meanwhile, the Nepalese government has begun drafting the budget for the upcoming fiscal year (2082/83 BS). With increasing pressure on financial resources, a reduction in external aid could pose serious challenges to Nepal’s economic plans. If the government’s revenue collection continues to fall short of expectations, and international donor agencies like the World Bank and IMF halt their funding, Nepal could face significant financial difficulties in the coming years.

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