Kathmandu, Sept 26: Minister for Finance Dr Prakash Sharan Mahat has called for concessional financial aid for the development of least developed countries like Nepal.
Minister Dr Mahat said so in his address to the business roundtable of governors in the 8th annual meeting of Board of Governance of the Asian Infrastructure Investment Bank (AIIB) held in Sharm El-Sheikh, Egypt.
He further called on all member states to accept Nepal's proposal for placing a separate mechanism in providing financial aid to the least developed countries in subsidy.
On the occasion, Finance Minister Dr Mahat said global economic instability, accelerated journey towards Green House Gas emissions and economic development of low and middle income countries and access to financial resources for poverty alleviation and quality life of citizens were three major challenges.
The role of multilateral development banks, including AIIB is crucial to avert such crises, he added.
Finance Minister Dr Mahat said the low income countries also needed support for economic recovery and development, employment generation, green infrastructure development, expansion of access to financial instruments, technical and institutional capacity development, climate change-induced disaster management and other social safety net areas.
In the context when huge financial resource is a need particularly for least developed and developing countries, the existing financial assistance mechanism and instruments are not adequate.
He also stressed the need for innovation in the area, calling for AIIB to utilize innovative and creative finances, including public private partnership, green bond and combined finance to not allow the shortage of financial instruments in the country having weak economy.
The Finance Minister stressed on the need for the enhancement of climate finance and related facilities for Nepal and other countries that have been facing immoderate negative effects of climate change despite negligible role in carbon emission.
The minister also drew attention of all participants towards reviewing and determining appropriate carbon trade.
As many as 86 countries had participated in the AIIB high-level meeting that is concluding today. Finance Minister Dr Mahat is returning home tomorrow. (RSS)