Cost of non-compliance: Billions worth infrastructure damaged, death toll rises to 169

Lack of serious disaster preparedness, non-compliance, and timely rescue has cost the country billions.  

Flood and landslide caused by incessant rainfall that started on Thursday afternoon has damaged infrastructure, including roads, bridges, hydropower projects, power lines and buildings, worth billions, whereas some 169 people also lost their lives.

The death toll from disaster-related incidents across the country has reached 169, according to the Home Ministry.  In addition to the loss of lives, the infrastructure damage is also extensive due to inaction of the government.

According the World Bank, the government's disaster-related expenditures between 2012 and 2020 amounted to over $3.8 billion (Rs 451.45 billion), or an annual average of about $430 million (Rs 50 billion). However, this year's disaster-related expenditures might be double the annual average to around $800 million. 

According to Armed Police Force (APF) under Home Ministry, some 60 others are injured, while 54 are missing. "Floods and landslides triggered by incessant rain since Thursday afternoon damaged 322 houses and 16 bridges across the country," the APF reported.

The three districts in the Valley — Kathmandu, Lalitpur and Bhaktapur — recorded some 79 deaths, with 52 in Kathmandu alone. The Southern part of Lalitpur district is still cut-off with the rest of the district due to landslide and electricity outage, due to heavy downpour. 

Likewise, Kathmandu Valley is cut-off with the rest of the country due to landslide and flood-caused bridge and road damage. The vehicles are seen on the highways that lead to the Kathmandu Valley.

The eastern entry point to the Kathmandu Valley, Banepa, is obstructed due to road damage on BP Highway, whereas the western entry point to the Kathmandu Valley, Thankot, is obstructed due to landslide and road damage in Naubise. The security forces are, however, working hard to clear the roads following to western entry point, Thankot, for emergency rescue operations also.

Likewise, some 66 deaths were reported in Bagmati Province, excluding the Kathmandu Valley.

Koshi and Madhesh Provinces recorded some 21 and three deaths, respectively, the report stated, adding that no fatalities have been recorded in the other four provinces. But Butwal, in the Lumbini Province, was flooded that halted transportation.

Death toll climbs as torrential rains pound Nepal

Much of Kathmandu stands underwater today and the capital’s main river, the Bagmati, is flowing above danger levels after incessant rain lashed much of eastern and central Nepal on Friday and Saturday (today).

After rainfall exceeding 340mm fell in under three days in many places across the Kathmandu Valley the Bagmati is flowing at 6.16metres at Khokana: 2.16m above danger levels, according to a press note issued by the International Centre for Integrated Mountain Development (ICIMOD).

Rivers in eastern and central Nepal are also dangerously engorged: at the time of writing the Narayani River at Devghat is running at 11.5 metres: 2.5m above danger levels. Sunkoshi River in Khurkot also recorded 11.5 m, which is almost 3m higher than the danger threshold, it reads, adding that rescue-workers have used boats and helicopters to evacuate affected citizens stranded in their homes as water levels rose.

The government states 66 people have been killed since early on Friday, with 60 injured and 69 missing, with floods and landslides closing major roads and disrupting domestic air travel.

“I’ve never before seen flooding on this scale in Kathmandu,” said  Climate and Environmental Risks Lead at the Hindu Kush Himalayan knowledge centre at ICIMOD Arun Bhakta Shrestha.

Kumaltar, in the Kathmandu Valley, received 381.2 and Godavari received 346.6 mm in rains that set in early on Thursday. Large areas of Nepal were projected to see rainfall in the “extremely heavy rainfall” category (over 200mm) on both Friday and Saturday.  

A low-pressure system in the Bay of Bengal and the more northerly than usual position of the monsoon trough is the reason for this weekend’s late, and exceptionally intense rain.

Contrary to earlier forecasts which showed another day of heavy rain, ICIMOD’s High-Impact Weather Assessment Toolkit (HIWAT) now shows rain subsiding tomorrow (Sunday).

Scientists say that while climate change is changing the amount and timing of rainfall across Asia, a key reason for the rise in the impact of floods is the built environment, including unplanned construction, especially on floodplains, which leaves insufficient area for water retention and drainage.

They recommend central governments and city planners urgently increase the investment in and planning of both ‘grey’ (engineered) and ‘green’ (nature-based) infrastructure: such as underground stormwater and sewage systems; and the restoration of wetlands or the introduction of permeable pavements and ‘rain gardens’ to increase cities’ capacity to absorb water and help communities adapt.

This unprecedented rain has fallen on soil already saturated following a more than 25 per cent above normal rainfall this monsoon in Kathmandu, the press note reads, "Its impact is aggravated by poor drainage due to unplanned settlement/haphazard urbanisation, construction on floodplains, and lack of areas for water retention, and encroachment on the Bagmati river."

Extreme floods from two consecutive heavy monsoon years have caused devastation in many parts of the Hindu Kush Himalaya region in 2023 and 2024, and recent analysis by climate scientists shows Asia’s exposure to extreme rain and flood risk growing by 2030.

The research shows the continent will face the greatest rainfall changes in the world by 2100, with ICIMOD regional member countries Bangladesh, China, and India among 10 Asian countries that have the highest risk of extreme rainfall by the end of the century. 

XDI’s 2023 Gross Domestic Climate Risk Dataset, the expert group in physical climate risk, shows that 114 of the top 200 provinces with the highest aggregated damage ratio by 2050 will be in Asia.

XDI Gross Domestic Climate Risk Map. Source: XDI

Landmark research by Chinese researchers and the UK Met Office published in the journal Science this July showed that climate change is not only resulting in more extreme precipitation, but also greater variability in rainfall – with greater swings between intense rain events. The research used observational data since the 1900s to track already detectable changes – with the greater variability in rainfall posing challenges for weather and climate predictions, as well as for resilience and adaptation by societies and ecosystems.

ICIMOD’s 2023 assessment report, Water, Ice, Society, and Ecosystems in the Hindu Kush Himalaya suggests similar changes in the Hindu Kush Himalaya.

Alongside many in the region, many ICIMOD employees have found themselves on the frontline of these floods.

We extend our solidarity to all those suffering today, and will continue to work to increase the reliability of forecasts, to roll out early warning systems, and to advocate for planned settlements and nature-based solutions to mitigate flood risks.

The ICIMOD claims that it continue to share our Earth Observation tools with government agencies and first responders, including those in humanitarian agencies, to help them anticipate major events and preposition aid.

Experts to explore social protection's role in reducing poverty, building resilience and investing in human capital

The government is committed to building a more inclusive social protection system that serves the needs of all, especially our children and the future generations.

Inaugurating the conference 'Resilient and Inclusive Social Protection: Investing in Human Capital Development', here today, the deputy prime minister and finance minister Bishnu Paudel reiterated the government's commitment. 

"This conference comes at a crucial time as Nepal is investing in its human capital,” he said at the conference organised jointly by the government, National Planning Commission (NPC), in partnership with UNICEF and the World Bank (WB), 

This is the second international conference on social protection -- organised in Kathmandu today and tomorrow -- that aims to foster critical dialogue on how social protection can be leveraged to reduce poverty, build resilience, and invest in the human capital of future generations.

Nepal is undergoing rapid economic, social, and demographic changes, with approximately 20 per cent of the population still living below the poverty line and significant inequality remaining a concern. Nepal’s Constitution guarantees the right to social security for vulnerable groups, but much of its investment in social protection has focused on the elderly, with limited attention to children and other vulnerable groups.

The vice chair of NPC Prof Dr Shivaraj Adhikari on the occasion, said that the government, through the Sixteenth Periodic Plan, has given high priority to human capital development. "It is necessary to increase investment in children for this purpose," he said, highlighting the fact that human development is both a means and an end in the context of the country's development. He also emphasised that social protection plays a crucial role in building human capital.

Although the government has been increasing investment in social protection, the investment made in social protection has had only a limited impact on reducing poverty, building human capital, and promoting resilience against shocks and risks that may arise at various stages of the human life cycle.

“By investing in the early years, including through universal child grants, we can break intergenerational cycles of poverty that hold back future generations," said Regional Director of UNICEF South Asia Sanjay Wijesekera. 

"Through this conference, we are not only reaffirming our commitment to the children and young people of Nepal, but we are also challenging ourselves to create a world where every child and young person, no matter his or her circumstances, has the opportunity to thrive and contribute to a brighter, more resilient future," he added.

The conference builds on the momentum of the 2019 International Conference on Social Protection, which promoted policy debate on strengthening social protection for children and the expansion of the child grant, establishment of an integrated registry, increased use of the cash plus approach, investment in productive employment and social security for the formal and informal sectors.

This year’s conference provides a platform to reflect on key progress in Nepal since 2019 and for knowledge exchange, learning from best practices, and collaboration towards achieving SDG Target 1.3, which calls for implementing nationally appropriate social protection systems for all.

“In the face of economic challenges, global conflicts and climate change, adaptive social protection systems are more critical than ever,” said World Bank Operations Manager for Maldives, Nepal, and Sri Lanka Preeti Arora. 

“Effective social protection can buffer vulnerable populations, including women, youth, and children from crises while enabling them to invest in education, healthcare, and other essential services that enhance human capital and their productivity," she added.

The conference brings together senior representatives from the government, UNICEF, the World Bank, regional and global social protection experts, and key stakeholders from various sectors.

On the occasion, director at the Economic Policy Research Institute (EPRC) Dr Michael Samson delivered the keynote address on ‘Investment in social protection for human capital, inclusion and resilience – Global Perspective.”

गरिबी न्यूनीकरण, उत्थानशीलता निर्माण र मानव पुँजी निर्माणमा लगानी गर्न सामाजिक सुरक्षाको भूमिका

काठमाडौं । सामाजिक सुरक्षा र मानव पुँजी विकासमा सरकार प्रतिबद्ध रहेको उपप्रधानमन्त्री तथा अर्थमन्त्री विष्णु पौडेलले बताएका छन् । 

सरकार, राष्ट्रिय योजना आयोग, संयुक्त राष्ट्र संघीय बाल कोष  (युनिसेफ) र विश्व बैंकको संयुक्त साझेदारीमा विहीबार तथा शुक्रबार सामाजिक सुरक्षा र मानव पुँजी विकास सम्बन्धी दोस्रो अन्तर्राष्ट्रिय सम्मेलन काठमाडौंमा आयोजना भइरहेको ‘उत्थानशील तथा समावेशी सामाजिक संरक्षणः मानव पुँजी निर्माणमा लगानी’ सम्मेलन उद्घाटन गर्दै उनले मुलुकको आजको आवश्यकता र विशेष गरी हाम्रा बालबालिका र भावी पुस्ताको आवश्यकता पूरा गर्न थप समावेशी सामाजिक संरक्षण प्रणाली निर्माण गर्न प्रतिबद्ध रहेको बताएका हुन् ।। 

‘उत्थानशील तथा समावेशी सामाजिक संरक्षणः मानव पुँजी निर्माणमा लगानी’ दुईदिने सम्मेलनले गरिबी न्यूनीकरण गर्न, उत्थानशीलता निर्माण गर्न र भावी पुस्ताको मानव पुँजीमा लगानी गर्न सामाजिक संरक्षणलाई कसरी सदुपयोग गर्न सकिन्छ भन्ने विषयमा समालोचनात्मक संवादलाई प्रोत्साहन गर्ने लक्ष्य राखेको छ । 

नेपालले आफ्नो मानव पुँजी निर्माणमा लगानी बढाउदैँ गरेको महत्वपूर्ण समयमा यो सम्मेलनको आयोजना भएकोमा मन्त्री पौडेलले आयोजकलाई धन्यवाद पनि दिए । 

यतिबेला नेपाल तीव्र आर्थिक, सामाजिक र जनसांख्यिकीय परिवर्तनहरूबाट गुज्रिरहेको छ। लगभग २० प्रतिशत जनसंख्या अझै पनि निरपेक्ष गरिबीको रेखामुनि बाँचिरहेका छन् र उल्लेखनीय रूपमा रहेको आर्थिक-सामाजिक असमानता अझै पनि चिन्ताको विषय रहेको छ।

नेपालको संविधानले जोखिममा रहेका सबै समूहका लागि सामाजिक संरक्षणको हक सुनिश्चित गरेको छ। तर सामाजिक संरक्षण सम्बन्धी अधिकांश लगानी ज्येष्ठ नागरिकहरूमा केन्द्रित रहेको छ।बालबालिका र अन्य जोखिममा परेका समूहहरूलाई सीमित रुपमा मात्र ध्यान दिइएको अवस्था छ। 

उत्त, अवसरमा बोल्दै राष्ट्रिय योजना आयोगका उपाध्यक्ष प्रा डा शिवराज अधिकारीले सरकारले सोर्हौं योजनामार्फत मानव पुँजी निर्माणलाई उच्च प्राथमिकता प्रदान गरेको स्मरण गरे । “यसका लागि बालबालिकामा लगानी बढाउनु आवश्यक रहेको छ,” उनले भने, “देश विकासको सन्दर्भमा मानव विकास साधन र साध्य दुबै हुन्छन् ।” 

यस्तै, उनले सामाजिक संरक्षणले मानव पुँजी निर्माणमा महत्वपूर्ण भुमिका निर्वाह गर्ने विषयलाई पनि जोड दिए । 

सरकारले सामाजिक सुरक्षामा लगानी बढाउदैँ गएको भएतापनि सामाजिक सुरक्षा गरिने लगानीले गरिबी घटाउन, मानव पुँजी निर्माण गर्न र मानव जीवन(चक्रका विभिन्न चरणमा आईपर्न सक्ने झट्का तथा जोखिमहरूबाट उत्थानशीलता प्रवर्द्धन गर्न सीमित प्रभाव मात्र पारेको अवस्था छ।

"प्रारम्भिक वर्षहरूमा लगानी गरेर, जस्तै सर्वब्यापी बाल अनुदान कार्यक्रमहरू मार्फत, हामीले गरिबीको अन्तर पुस्ताको चक्रलाई तोड्न सक्छौं, जसले भविष्यका पुस्तालाई पछाडि धकेलिरहेको छ," दक्षिण एशियाका युनिसेफ क्षेत्रीय निर्देशक सञ्जय विजेसेकराले भने ।

"यस सम्मेलन मार्फत, हामीले नेपालका बालबालिका र युवाहरू प्रतिको हाम्रो प्रतिबद्धतालाई मात्र मात्र जोड दिइरहेका छैनौँ, हामी आफैंलाई चुनौती दिइरहेका छौं कि हरेक बालबालिका र युवाले, चाहे उनीहरूको अवस्था जे भए पनि, अघि बढ्ने र उज्यालो र अझ बढी उत्थानशील भविष्यमा योगदान पुर्याउने अवसर पाउने अवस्था सिर्जना गर्न हामी प्रतिबद्ध रहेको संन्देश दिन चाहन्छौं ।"

यस सम्मेलनले सन् २०१९ को सामाजिक संरक्षणसम्बन्धी पहिलो अन्तर्राष्ट्रिय सम्मेलनले उठाएका मुद्दाहरूलाई अझ अगाडि बढाउनेछ । पहिलो सम्मेलनले बालबालिकाको सामाजिक संरक्षणलाई सुदृढ गर्ने र बाल अनुदानको विस्तार, एकीकृत सामाजिक लगत स्थापना, नगद प्लस दृष्टिकोणको बढ्दो प्रयोग, उत्पादनमूलक क्षेत्रमा लगानी, औपचारिक र अनौपचारिक क्षेत्रका लागि रोजगारी र सामाजिक सुरक्षा जस्ता नीतिगत बहसलाई जोड दिएको थियो।

यो सम्मेलनले सन् २०१९ यता सामाजिक संरक्षणको क्षेत्रमा नेपालले हासिल गरेका प्रमुख उपलब्धिहरू प्रस्तुत गर्न र दिगो विकास लक्ष्यहरु मध्येको लक्ष्य १।३ जसले सबैका लागि राष्ट्रिय रूपमा उपयुक्त सामाजिक सुरक्षा प्रणालीहरू लागू गर्न आह्वान गर्दछ । उक्त लक्ष्य हासिल गर्न ज्ञान आदानप्रदान गर्न, उत्कृष्ट अभ्यासहरूबाट सिक्न र सहकार्य गर्ने प्रभावकारी मञ्च प्रदान पनि गर्ने आयोजकले जनाएका छन् । 

"आर्थिक चुनौतिहरू, विश्वव्यापी द्वन्द्व र जलवायु परिवर्तनको सामना गर्न, अनुकूलनशील सामाजिक संरक्षण प्रणालीहरू पहिलेभन्दा धेरै महत्त्वपूर्ण भएका छन्," माल्दिभ्स, नेपाल र श्रीलंकाका लागि विश्व बैंककी सञ्चालन प्रबन्धक प्रीति अरोराले उक्त अवसरमा भनिन् । 

"प्रभावकारी सामाजिक सुरक्षाले जोखिममा रहेका जनसङ्ख्या, जस्तै महिला, युवा र बालबालिकालाई शिक्षा, स्वास्थ्य सेवा र मानव पुँजी वृद्धि गर्ने र उत्पादनशीलता बढाउने अन्य आवश्यक सेवाहरूमा लगानी गर्न सक्षम बनाएर संकटबाट जोगाउन सक्छ," उनले भनिन् । 

यसैगरि, आर्थिक नीति अनुसन्धान संस्थानका निर्देशक डा माइकल स्यामसनले ‘मानव पुँजी, समावेशीकरण र उत्थानशीलताका लागि सामाजिक संरक्षणमा लगानी – विश्वव्यापी परिवेश’ विषयक सम्मेलनको मुख्य कार्यपत्र प्रस्तुत गरेका थिए । उनले आफनो कार्यपत्रमा सामाजिक सुरक्षाका पहिलो, दोस्रो तथा तेस्रो लहर र ती लहरमा नेपालको अवस्थाका बारेमा प्रकाश पारेका थिए ।

सम्मेलनमा नेपाल सरकार, युनिसेफ, विश्व बैंक, क्षेत्रीय र विश्वव्यापी सामाजिक संरक्षण क्षेत्रका विज्ञहरू र विभिन्न क्षेत्रका प्रमुख सरोकारवालाहरूका वरिष्ठ प्रतिनिधिहरूको  सहभागिता रहेको छ। 

Disaster experts from Bhutan, Nepal and Pakistan convene in Islamabad to increase regional capacity to manage and respond rising risk in mountains

Professionals from key disaster management agencies from Bhutan and Nepal are in Islamabad this week to learn pioneering disaster risk reduction strategies from counterparts in Pakistan.

Senior experts from Nepal and Bhutan visited Pakistan’s state-of-the-art National Emergency Operations Center (NEOC), the country's Pakistan Meteorological Department (PMD) and the Global Climate Change Impact Studies Centre (GCISC).

The visit, jointly organised by Nepal-headquartered International Centre for Integrated Mountain Development (ICIMOD) and Pakistan’s National Disaster Management Authority (NDMA) aims to provide countries with hands-on exposure to cutting-edge technologies and approaches used by NDMA Pakistan for proactive disaster risk reduction and management, and to increase the region’s capacities to manage disasters, according to the ICIMOD.

“The 2022 floods were a turning point for Pakistan’s disaster strategy, highlighting the need for a centralized, coordinated response,” said chairman of NDMA Lieutenant General Inam Haider Malik, briefing delegates on the country’s ‘360-degree’ disaster management mechanism which addresses disaster assessments, response, recovery, and rehabilitation.

Malik expressed interest in not just sharing Pakistan’s experiences and resources with neighbouring countries, but also in the potential for Pakistan to learn Nepal and Bhutan, for instance on management of climate-induced tourism risks. 

He outlined several potential areas for ongoing collaboration including:  forming technical working groups to address mountain-specific disasters; building an inventory of critical disaster equipment that might be shared across borders in the events of major events; capacity-building in search and rescue, building on Pakistan’s urban search and rescue teams and leveraging Nepal’s participation in the upcoming International Search and Rescue Advisory Group (INSARAG) Asia Pacific Earthquake Response exercise in Lahore.

“Nepal and Pakistan have experienced large-scale seismic and climate-induced disasters in recent years,” said chief executive of National Disaster Risk Reduction and Management Authority (NDRRMA) Anil Pokhrel.

“Exchanges such as this help us learn from NDMA Pakistan’s transformation in disaster response, including in its state-of-the-art national emergency operations," he said, adding, "Jointly we can further simulations for glacial lake outburst floods, a common climate change threat faced by both countries, while charting areas for collaboration on disaster risk reduction management.”

On the occasion, Arun Bahadur Shrestha, who leads ICIMOD’s Climate and Environmental Risks work, said the exchange visit would help participating countries cope with future disasters, and stressed the importance of strengthening regional cooperation on DRR.

“ICIMOD’s goal is to foster knowledge-sharing and create a strong network of disaster management professionals across the region, as the challenges we face are shared, and so must be our solutions,” he said.  

“This initiative exemplifies the importance of regional cooperation, and we look forward to applying knowledge gained here to strengthen disaster management efforts in our respective countries,” said executive engineer, Disaster Prevention and Mitigation Division, Ministry of Home Affairs, Bhutan, Sonam Tshewang.

The visit comes after another deadly monsoon in South Asia: with the serious disasters hitting Nepal including mudslides, waterlogging, glacial lake outbursts and damaged infrastructure. Nepal’s monsoon preparedness plan estimated close to 400,000 households would be affected. Bhutan’s capital of Thimpu, meanwhile, faced unexpected landslides and floods.

A joint Simulation Exercise (SimEx), led by NDMA, focused on Glacial Lake Outburst Flood (GLOF) scenarios, including the Badswat GLOF in Gilgit Baltistan, Pakistan, and the Imja Glacier in Khumjung, Nepal.

Delegates from Nepal, Bhutan, and Pakistan actively participated in interactive discussions, sharing best practices from their respective disaster management strategies in response to the simulated scenarios.

The visit concluded with a policy-action dialogue on future strategies to address climate-induced disasters in Pakistan jointly organised by ICIMOD, the Ministry of Climate Change (MoCC&EC) and Environmental Coordination and the Civil Society Coalition for Climate Change (CSCCC).

MCA-Nepal signs contract for 18-km cross border transmission line

MCA-Nepal signed a contract for the critical 18-km cross-border electricity transmission line, a critical component of the broader Electricity Transmission Project under the Millennium Challenge Corporation (MCC) Nepal Compact funded by the Government of Nepal and the US government.

As MCA-Nepal marks the one-year anniversary of the Compact’s Entry-Into-Force, this new milestone reflects the unwavering commitment from all stakeholders to enhancing regional energy trade between Nepal and India, states a press note issued by the MCA-Nepal office.

The contract, valued at $12.36 million, has been awarded to Transrail Lighting Ltd, which will construct the transmission line from the 400 kV New Butwal Substation in Nawalparasi Bardhaghat Susta West to the Nepal-India border within the contract duration of 21 months. 

The contract was signed by executive director of MCA-Nepal Khadga Bahadur Bisht and representative of Transrail Lighting Ltd Amol Wankhede, in the presence of officials from the Finance Ministry, National Electricity Authority (NEA), MCC and MCA-Nepal, 

“Along with the signings of the three substation contracts worth $126 million, this 18-km transmission line project is set to play an important role in helping Nepal make strides in achieving its domestic power goals and reinforcing Nepal's position in the regional energy market," finance secretary and MCA-Nepal Board chair Dr. Ram Prasad Ghimire said after signing the contract.  

"This 18-km segment is not just a construction project; it’s a critical link that will enhance Nepal's energy infrastructure and deepen our cross-border energy cooperation with India," managing director of NEA Kul Man Ghising said, adding that the accomplishment is a testament to the strategic foresight and dedication of all involved.

"The successful contracting of the 18-km cross-border transmission line marks a major milestone in our shared journey to transform Nepal’s energy landscape and economic future," MCC Resident country director Ms Diane L Francisco said addressing the signing ceremony. "This achievement is one of many successes of the MCC Nepal Compact in the past year, but it is particularly significant as it paves the way for the larger 297-km transmission line project." 

“As we celebrate the first anniversary of the MCC-Nepal Compact, this contract signing is a clear indicator of the progress we are making," executive director of MCA-Nepal Khadga Bahadur Bisht said, adding that the 18-km cross-border segment, separated from the larger project to expedite its completion, shows the government of Nepal’s commitment to meeting the project goals of this National Pride Project, and reaffirms that collaborative effort from all stakeholders leads to a successful outcome.

For the remaining 297-km of transmission line, MCA-Nepal’s preparations are on track to launch the bid before the end of this year.

Concerted efforts required to mobilise finance for sustainable development

The government, private sector, and the UN in Nepal jointly emphasised on mobilising sufficient development finance to achieve Nepal’s key development targets including the Sustainable Development Goals (SDGs).

During 'The Financing for Development Dialogue: Nepal’s Road to the Summit of the Future' organised by the United Nations Nepal (UN Nepal) in partnership with the Finance Ministry and Federation of Nepalese Chambers of Commerce and Industry (FNCCI), here today the stakeholders in finance and development highlighted the requirement of additional investment to achieve sustainable development and accelerate structural transformation of the economy.

Speaking at the inauguration session, the deputy prime minister and finance minister Bishnu Prashad Poudel pointed out that in developing countries, a significant portion of revenue is spent on debt servicing, leaving little for development investment. He emphasised that Nepal is no exception and called for collaboration between the government, private sector, and development partners to mobilise resources. Poudel also stressed the importance of formulating a common position for the upcoming Summit for the Future at the UN and noted that this dialogue would contribute to that effort.

Four years after a series of global shocks – including the Covid-19 pandemic, geopolitical conflicts and economic instability – the SDG financing gap for developing countries like Nepal has ballooned to $4 trillion annually. The financing gap and accompanying debt challenges have worsened poverty and inequality, putting the world off track to meet international targets set in 2015.

The UN Resident Coordinator in Nepal Hanaa Singer-Hamdy, on the occasion, underlined that as Nepal spearheads towards graduation from its Least Developed Country (LDC) status, bold and decisive actions to strengthen economic foundations is needed by focusing on domestic reforms, advancing financial inclusion and gender equality, embracing digital transformation, and advocating for international cooperation.

Like FNCCI president Chandra Prasad Dhakal highlighted the need for efforts at all levels to mobilise investment for development, particularly in the context of declining foreign direct investment, revenue, and foreign aid. He also mentioned that the federation has been organizing special programmes to promote investment in Nepal and abroad and that a facilitation desk has been established to assist with foreign investment.

In the dialogue, participants dived deep into the most pressing issues for accelerating progress towards SDGs — financing or lack of it — at the time of rising geopolitical tension, post-pandemic weaker economic recovery, more frequent and intense climate-related crisis, existing inequalities and disparities including those related to gender and social marginalisation, and a new trade dynamic driven by protectionism and disengaged multilateralism, among others.