Prime Minister KP Sharma Oli on Tuesday, July 1, said that Least Developed Countries (LDCs) are trapped in a shrinking fiscal space, with unsustainable debt levels forcing them to spend more on repayments than on essential services such as healthcare and education.
Delivering his statement at the High-Level Event on LDCs as the leader of Nepal’s delegation to the Fourth International Conference on Financing for Development (FFD4) in Seville, Spain, Oli said the crisis facing LDCs is not only fiscal—it is deeply human. “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 asked.
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He warned that while financial resources exist globally, political will is lacking. “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 just when we need it most.”
Oli described the FFD4 as a moment of hope and called the “Compromiso de Sevilla”—adopted on Monday—a potential 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 urgently.”
He welcomed the recognition of the “Doha Programme of Action” in the FFD4 outcome document and its emphasis on full implementation. Nepal and Zambia, as LDC co-facilitators, worked with “deep conviction” to bring the concerns of the world’s poorest nations to the forefront, he said. “We are pleased that the outcome document reflects this, particularly in addressing both pre- and post-graduation needs of LDCs.”
Stressing the need for tangible action, Oli urged the global community to build on the momentum from Seville to realise the Doha Programme of Action and the 2030 Agenda. “The responsibility lies with us—to translate commitment into results.”
He called on development partners to honour the Seville Commitment “fully and faithfully,” noting this is essential to strengthening domestic resource mobilisation, boosting private investment and blended finance, expanding grant-based assistance, and unlocking LDCs’ trading potential.
“The Seville Commitment gives us more than hope—it gives us a path forward,” he said. “With collective resolve and renewed multilateralism, the unmet promises of Addis and beyond can still be fulfilled.”
Oli concluded by underlining the importance of development financing in building a fairer, more sustainable and prosperous world. “With the right financing, we can invest in people, fight poverty, build capacity, and create lasting opportunity. We can harness the power of science, technology, and innovation—by investing in infrastructure, expanding access, and strengthening systems.”
(With inputs from RSS)
