Kathmandu, Apr. 25
Deputy Prime Minister and Finance Minister, Bishnu Prasad Paudel,
has emphasised the need to mobilise alternative development financing to ensure
long-term investment in sustainable economic growth and infrastructure
projects.
Presenting the conceptual framework of the Alternative Development Finance Mobilisation
Bill at the House of Representatives on Friday,
Minister Paudel said that the bill aims to address the current shortage of
financial resources and to mobilise funds for national priority projects by
providing a legal foundation for such efforts.
He explained that the bill encompasses provisions for the
identification and prioritisation of infrastructure sectors and projects,
mobilisation of internal resources and foreign investments, the appropriate use
of financial instruments, institutional frameworks, and mechanisms for
monitoring and evaluation.
Minister Paudel further noted that the bill is essential not only
for mobilising alternative financial resources but also for generating
employment opportunities.
According to the concept he presented, there is growing global
competition in infrastructure development, alongside increasing investment
needs driven by climate change, expanding access to information technology, and
rising public expectations.
Studies on Nepal’s investment needs and potential indicate that over
Rs. 10 trillion will be required in the coming decade, the Ministry of Finance
said in a statement. However, historical data shows that annual infrastructure
investment in Nepal has been limited to only Rs. 200 to Rs. 300 billion. To
bridge this gap between need and actual investment, innovative financing
sources and mechanisms are necessary.
"In line with the long-term national goals set out in the 15th
Development Plan, the government requires substantial investment in areas such
as electricity generation, transmission and distribution, industrial and
special economic zones, smart cities, urban development, tourism
infrastructure, roads, irrigation, drinking water, and airport construction,"
read the statement by the MoF.
Upon assuming office as Finance Minister last year, Paudel had
approved a procedural framework related to alternative financing.
Published in The Rising Nepal daily on 26 April 2025.
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