Kathmandu, Sept. 28
Finance Minister Dr. Prakash Sharan Mahat has emphasised at
the meeting of the Board of Governors of the Asian Infrastructure Investment
Bank (AIIB) on the necessity for innovation in the financial aid mechanism for
the infrastructure needs of the developing nations.
"There is an inadequacy of the current financial aid
mechanisms and tools for the infrastructure development needs of developing
member nations. Therefore, priority should be given for innovation in this
sector," he said upon his arrival in Kathmandu from the meeting of the
AIIB on Thursday.
FM Dr. Mahat has returned home on Thursday after
participating in the eighth meeting of the Board of Governors of the AIIB. The
meeting, attended by representatives from 86 member nations of the bank, took
place in Sharm El Sheikh, Egypt.
To address the funding gaps in developing countries, he
advocated the adoption of novel and creative approaches, such as public-private
partnerships, green bonds, and blended finance, the Ministry of Finance (MoF)
informed in a statement.
Dr. Mahat noted that multilateral development banks,
including AIIB, have made substantial contributions to low-income countries in
areas such as economic recovery, job creation, green infrastructure
development, improved access to financial resources, enhancement of technical
and institutional capacity, climate-induced disaster management, and social security.
Furthermore, Dr. Mahat emphasised the importance of
increased climate finance and related facilities for countries like Nepal and
other developing nations that bear the brunt of climate change effects, despite
not being significant contributors to carbon emissions.
During this high-level gathering, Finance Minister Dr. Mahat
urged all member nations to endorse Nepal's proposal for the establishment of a
dedicated concessional mechanism tailored to the needs of underdeveloped
countries such as Nepal, read the statement.
He emphasised the significance of concessional financial
assistance in addressing critical developmental challenges.
In the course of the meeting, FM Dr. Mahat highlighted three
major global challenges: ensuring the stability of the world economy,
accelerating progress towards zero carbon emissions, and promoting the economic
development of low and middle-income nations. He underscored the pivotal role
that multilateral development banks, including the Asian Infrastructure
Investment Bank, must play in addressing these challenges.
As a panelist in a discussion on climate change issues and
the mobilisation of climate finance during the eighth annual meeting of AIIB, FM
Dr. Mahat presented a compelling case for Nepal's vulnerability to climate
change and elucidated the associated challenges.
He particularly called upon developed economies and major
carbon emitters to fulfill their commitments to combat climate change, recognising
the difficulties faced by developing nations like Nepal, which have a limited
role in causing the problem.
Meanwhile, FM Dr. Mahat urged all participants to review
carbon trading prices and maintain a fair and reasonable pricing structure.
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