‘Financing is not a problem for LDC graduates’

Kathmandu, June 10

United Nations Assistant Secretary General, Kanni Wignaraja, has said that finding financing is not a problem for a country that graduates from the Least Developed Country (LDC) and it will continue to flow in.

Speaking at a discussion on 'LDC graduation and SDGs financing' organised by the United Nations Development Programme (UNDP) Nepal on Friday, she said that in the post LDC context, financing is in fact not a problem but the graduated country should maintain standards in terms of labour law, social and environmental context.

Wignaraja maintained that LDC graduation is a matter of pride and there is more to gain than to lose. According to her, Nepal should also explore innovative financing instruments like climate finance.

Dr.  Yuba Raj Khadiwada, former Finance Minister and former Ambassador of Nepal to the United States of America, said that the country should involve the private sector in social security programmes.

Dr. Khatiwada suggested running the programmes like health insurance through private sector companies and subsidising the premium of those who can't pay it.

Likewise, Sushil Bhatta, Chief Executive Officer of Investment Board of Nepal, said that the board has given priority to the development of infrastructure in the areas of energy, tourism and industry.  

"We have developed a project pipeline with project registration, development, operation and exit. Our priority is to showcase Nepal as an investment destination and offer bankable projects in priority areas," he said.

According to Bhatta, the one-door investment agency has prepared projects in public private partnership with most of the risks borne by the developer while the processing and clearances are facilitated by the Office of the IBN.

He also expressed plan to implement the policy of blended finance. "We can rope in the philanthropic sector in some of the large infrastructure development," he said.

He also maintained that the Department of Industry should be given more importance since they handle a large number of investors, projects and activities.

Ambica Shrestha, owner of Dwarika Hotel, said that the government and private sector agencies should help enhance women's access to finance. "Most of the women entrepreneurs are small. A majority of them are on the outskirts, don't have quality education and poor access to finance," she said and added that they need technical support as well.

Similarly, Rita Simha, Chair of Women Entrepreneurship Development Committee at the Federation of Nepalese Chambers of Commerce and Industry, said that access to technology and capacity to use the technology should be the major concerns.

Experts stressed on efficient and strong coordination among the various governments and inclusion of women at policy level.

They suggested the government, civil servant and political leaders to decentralise their mindset first in order to strengthen the federalism.

Director General of FNCCI, Gokarna Awasthi, said that after the graduation, Nepali products might lose the market in Europe and elsewhere. Hence, there is a need to boost competitiveness in business and industry for which the private sector also wants support from the government.

We want private sector-led strategy for LDC graduation, he said.  

Economist and trade expert, Dr. Posh Raj Pandey, said that upgrading from the LDC means losing support in trade, development cooperation and policy space.

He warned that the public policy will be captured by the private interest, if the latter funded the candidates in elections and other political campaigns. 

Published in The Rising Nepal daily on 11 June 2022.