LDCs trapped in a shrinking fiscal space, says Prime Minister Oli

Kathmandu, July 1: Prime Minister KP Sharma Oli has said that the Least Developed Countries are trapped in a shrinking fiscal space, as debt is mounting unsustainably.

And tragically, "we spend more on debt repayments than on healthcare or education."     

In his statement as the Leader of the Nepali Delegation to the Fourth International Conference on Financing for Development (FfD4) at the High-Level Event on LDCs in Seville, Spain earlier today, Prime Minister Oli said this is not only a fiscal crisis but a human one. "Climate injustice strikes hardest in our regions as we spend more on recovery than we receive for prevention. Is this the climate justice we were promised?" he said.     

Prime Minister Oli also said that it is well known that the world doesn't lack money but lacks political will. "Crisis after crisis has shaken our economies. Conflicts and climate shocks have reversed years of progress. Our hard-earned gains towards the SDGs are stalling or slipping away. Aid is drying up and the support we once relied upon is fading just when we need it most."     

At this critical juncture, the Fourth International Conference on Financing for Development offers hope, he said and described the Compromiso de Sevilla adopted on Monday marks a turning point. "It reaffirms our shared commitment to put people—especially the most vulnerable—at the heart of global development efforts. It offers a clear message— the financing gap must be closed, and fast."     

He also expressed happiness over the fact that the Doha Programme of Action has been recognised—and its full implementation emphasised. As co-facilitators from LDCs, both Nepal and Zambia have worked with deep conviction to bring LDC issues to the forefront, and "We are pleased that the outcome document reflects this, especially in addressing both pre- and post-graduation needs of LDCs."     

The Prime Minister said the responsibility lies with us—to translate this commitment into real action. "Let us use the momentum from Sevilla to advance the Doha Programme of Action, and to realise the 2030 Agenda."     

Oli also urged development partners to honour the Sevilla Commitment—fully and faithfully, while noting that this is essential to strengthen domestic resource mobilization, boost private investment and blended finance, channel more grants and ODA into national programs, and expand LDCs' productive capacity to unlock their trading potential.     

Prime Minister OIi said the Sevilla Commitment gives us more than hope— it gives us a path and expressed the belief that with collective resolve and a renewed spirit of multilateralism, the unmet promises of Addis and beyond can still be fulfilled.     

This is a chance to build a fairer, prosperous yet sustainable future for all, while with the right financing, we can invest in people, we can fight poverty, build capacity, and create lasting opportunity. We can harness the power of science, technology, and innovatio by investing in infrastructure, expanding access, and strengthening systems. (RSS)