Finance for Development Dialogue Concludes with Key Action Points to Support the SDGs
Kathmandu, August 20: The Government of Nepal, in collaboration with the private sector and the United Nations in Nepal, has underscored the critical need to mobilize adequate financial resources to meet the country’s key development objectives, including the Sustainable Development Goals (SDGs).
During the "Financing for Development Dialogue: Nepal’s Road to the Summit of the Future," organized by the United Nations Nepal in partnership with the Ministry of Finance (MOF) and the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), stakeholders emphasized the necessity of increased investment to achieve sustainable development and accelerate the structural transformation of Nepal’s economy.
In his opening remarks, Deputy Prime Minister and Finance Minister Bishnu Prasad Poudel highlighted that a large portion of revenue in developing countries is consumed by debt servicing, leaving limited funds available for development investments. He noted that Nepal faces similar challenges and called for stronger collaboration between the government, private sector, and development partners to mobilize the necessary resources. He also stressed the importance of establishing a unified stance ahead of the upcoming United Nations Summit for the Future, with this dialogue serving as a vital contribution to that effort.
Four years after a series of global shocks—such as the COVID-19 pandemic, geopolitical conflicts, and economic instability—the financing gap for SDGs in developing countries, including Nepal, has surged to USD 4 trillion annually. This growing gap, alongside escalating debt challenges, has exacerbated poverty and inequality, pushing the world further off course from meeting the international targets set in 2015.
UN Resident Coordinator in Nepal, Ms. Hanaa Singer-Hamdy, emphasized the urgency for Nepal to take bold and decisive actions as it approaches graduation from its Least Developed Country status. She highlighted the need for domestic reforms, enhanced financial inclusion, gender equality, digital transformation, and robust international cooperation.
Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, pointed out the necessity of mobilizing investment for development at all levels, especially in light of declining foreign direct investment, revenue, and foreign aid. He noted that the federation has been actively organizing programs to promote investment in Nepal and abroad and has established a facilitation desk to support foreign investment.
During the dialogue, participants explored the most pressing issues hindering progress towards the SDGs, including financing challenges amid rising geopolitical tensions, a weaker post-pandemic economic recovery, more frequent and intense climate-related crises, persistent inequalities, and a shifting trade dynamic marked by protectionism and reduced multilateral engagement.
