Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has appealed to the Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, to adopt a policy that provides concessional credit rates for Nepal.
During a courtesy meeting with a delegation led by the AIIB director, Prime Minister Prachanda highlighted the challenges faced by a country like Nepal in obtaining loans at market interest rates due to the absence of concessional provisions within AIIB.
“Nepal still requires more favorable loan terms, but AIIB lacks such provisions,” emphasized Prime Minister Prachanda. He urged policymakers to reconsider this matter.
The Nepalese government is committed to good governance, institutional development, social justice, and prosperity through robust economic growth. Prime Minister Prachanda expressed his expectation that AIIB would support Nepal in areas such as financial management, technical assistance, knowledge sharing, and capital mobilization.
AIIB has already invested in energy sector projects in Nepal. The Prime Minister encouraged further investment in hydropower, tourism, information technology, and infrastructure development, citing significant potential for growth.
Historical agreements have paved the way for exporting 10,000 megawatts of electricity to India and also exporting electricity to Bangladesh, which bodes well for Nepal’s hydropower sector, according to Prime Minister Prachanda.
He emphasized the favorable investment climate in the energy sector and announced an upcoming investment conference in April.
Prime Minister Prachanda expressed confidence that AIIB’s representation at the highest level would contribute to creating a conducive environment for investment in Nepal’s priority areas. The government’s recent policy changes aim to promote both domestic and foreign investment in Nepal.
