Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), urged the global community to forge robust partnerships and prioritize climate-friendly financing to support Nepal’s transition after graduating from Least Developed Country (LDC) status in 2026. Speaking at the “Resilience for Empowerment: Climate-Smart Financing for Sustainable LDC Graduation” conference held at FIBES Sevilla Exhibition and Conference Centre in Seville, Spain, on Tuesday, Dhakal highlighted both opportunities and challenges ahead.
Dhakal noted that while Nepal has met two of the three LDC graduation criteria, its low per capita income and high vulnerability to climate change pose significant hurdles. “Nepal boasts over 40,000 MW of hydropower potential, world-class adventure tourism, and growing youth participation in digital and IT services,” he said. “However, realizing this potential requires strong global partnerships and climate-focused financial support.”
He underscored Nepal’s pressing financial needs, citing the government’s National Adaptation Plan, which estimates a requirement of USD 47 billion by 2050 for climate adaptation—approximately USD 1.3 billion annually. Additionally, Nepal faces an 11% GDP financing gap yearly to achieve Sustainable Development Goals. Dhakal highlighted a decline in tax revenue from 20% to 16% of GDP and the nascent stage of private-sector investment in green sectors, emphasizing the need for support from development partners and long-term investors.
Despite challenges, Dhakal pointed to progress, including the government’s amendment of over 30 laws to improve the business and investment climate, alongside the approval of a bilateral investment agreement framework. These reforms signal a commitment to fostering a conducive environment for growth.
Dhakal stressed that LDC graduation should mark the start of new partnerships, not the end of international support. He called for global cooperation to build economic resilience, invest in clean energy, and mitigate climate risks. Representing Nepal’s private sector, he affirmed FNCCI’s readiness to collaborate.
The event saw policymakers, development partners, private-sector leaders, and experts from around the world discuss financing challenges and opportunities for climate resilience and sustainable development in LDCs. Nepal’s proactive stance, as voiced by Dhakal, positions it as a key player in seeking sustainable solutions post-graduation.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
