September 26: Minister for Finance Dr Prakash Sharan Mahat has urged for concessional financial aid for the development of least developed countries like Nepal.    

Minister Mahat made the appeal during the 8th annual meeting of the Asian Infrastructure Investment Bank (AIIB) held in Sharm El-Sheikh, Egypt.    

According to the state-owned RSS, he further called on all member states to accept Nepal's proposal for placing a separate mechanism in providing subsidized financial aid to the least developed countries.    

On the occasion, Finance Minister Mahat said some of the major challenges that have emerged worldwide include global economic instability, accelerated journey towards Green House Gas emissions, lackluster economic development of low and middle income countries and difficulty in access to financial resources for poverty alleviation to maintain quality life of citizens, RSS further reported.    

The role of multilateral development banks, including AIIB is crucial to avert such crises, he added.    

Finance Minister Dr Mahat said the low income countries also needed support for economic recovery and development, employment generation, green infrastructure development, expansion of access to financial instruments, technical and institutional capacity development, climate change-induced disaster management and other social safety nets.    

Finance Minister Mahat argued that the existing financial assistance mechanism and instruments are not adequate in the context when huge financial resource needed particularly for the least developed and developing countries.   

According to RSS, he also urged the AIIB to utilize innovative and creative finances, including public private partnership, green investment and combined finance to avoid the shortage of financial instruments in the countries having weak economy.    

The finance minister stressed on the need for the enhancement of climate finance and related facilities for Nepal and other countries that have been facing negative effects of climate change despite negligible role in carbon emission.    

The minister also drew the attention of all participants towards reviewing and determining appropriate carbon trade.    

Nepal, a founding member of the AIIB established on the initiative of China, is yet to get any concessional loans from Asian Infrastructure Investment Bank (AIIB).

In every annual meeting of AIIB, the finance ministry of Nepal submits proposals for concessional loans from the multilateral donor organisation but the AIIB turns down the proposals every time.

As many as 86 countries attended the high-level AIIB meeting that concluded on Tuesday. Finance Minister Dr Mahat is returning home today.