Nepal calls for concessional financing to bridge development gaps

KATHMANDU: Prime Minister Pushpa Kamal Dahal has urged developed nations to assist countries that missed out on the industrial revolutions.

Dahal made this appeal while inaugurating the third replenishment of the International Development Association (IDA)-21 of the World Bank Group in Kathmandu on Tuesday.

The IDA has been a committed development partner in South Asia for over six decades. PM Dahal argued that helping countries lagging in industrial development is crucial for achieving global peace and prosperity. Concessional financial aid can accelerate the development pace, he stated, mobilizing resources, technology, and investment for inclusive economic growth by bridging financial gaps, Dahal said.

Dahal also said Nepal was facing a shortage of funds to meet the Sustainable Development Goals (SDGs), Nationally Determined Contributions (NDCs) and sustainable infrastructure needs despite efforts towards inclusive economic development. Revenue constraints and trade losses hinder progress, necessitating grant assistance for job creation, economic activities, and graduating from Least Developed Country status, he added.

“Human capital, health, and quality education require financial resources. Enhancing infrastructure and living standards are priorities,” PM Dahal said. “Digitalization, productive sector investment, entrepreneurship promotion and skill development are also in focus.”

PM Dahal also said Nepal advocates for climate justice, including compensation for loss and damage, as it bears a disproportionate impact of climate change.

Senior Managing Director at World Bank, Axel van Trotsenburg, said the meeting would provide a guideline for the mobilization of IDA resources in addition to making plans for the coming decade.

On the occasion, the Managing Director at Dwarika Hotel, Sangita Shrestha, urged the development partners and policymakers to work actively for effective mobilization of financial resources that cater to sustainable development efforts.

The event attended by over 200 representatives from 61 countries including high-level officials of the World Bank will continue till June 21.