Kathmandu, Sept 4: Permanent secretary of the United Kingdom Department for International Development (DFID), Matthew Rycroft, paid a courtesy call on Finance Minister, Dr Yubraj Khatiwada, at the Finance Ministry on Wednesday.

On the occasion, they discussed about the 203-year-old Nepal-UK diplomatic relations as well as various matters of mutual interest.

Saying fiscal federalism is being effectively implemented as well as rights and duties related to federalism have been delegated in an easy and smooth manner, he said that capacity development in good governance and judicial system was necessary as states and local levels are in a learning phase.

Minister Khatiwada said that the country has entered in the phase of implementation of federalism by making arrangement of resources, rights and duties in a balanced way.

Similarly, Permanent Secretary Rycroft wished for successful implementation of federalism, saying practicing federalism without any dispute by holding election of all levels in federal structure along with constitution promulgation was commendable.

He further said that the UK government was ready to help Nepal to resolve problems facing implementation of laws and policies in course of implementing federalism.

The Permanent Secretary shared that dual taxation avoidance agreement process between Nepal and the UK would be forwarded.