Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has urged the Asian Infrastructure Investment Bank (AIIB) to ensure a policy for concessional loans to Nepal.

PM Prachanda, during a meeting with a delegation of the AIIB, led by RMP Rathnayake, the AIIB director, held on Monday, said that it becomes challenging for nations like Nepal to take loans at market interest rate as AIIB does not have such windows.

He said, “There is a need for further subsidized loans to Nepal, but there is no such arrangement to AIIB. The market interest rate has limited Nepal's access to the finances of banks. Therefore, I urge you all to consider this.”

Stating that the government is focused on achieving a high economic growth target simultaneously with good governance and institutional development, social justice and propensity-centric country, PM said that he expects AIIB's support in private capital mobilization, financial mobilization, technical support, and knowledge sharing.

Mentioning that there is an investment of AIIB on a few projects in the energy sector in Nepal, PM requested AIIB to invest saying that there are ample possibilities in sectors of tourism, information technology, hydropower, and infrastructure development.

PM Prachanda, said, “The historical arrangements, exporting 10,000 megawatts of electricity to India and to Bangladesh as well, this has paved the way for Nepal's electricity trade. There is a good possibility of investment in the electricity sector. We will host a Third Nepal Investment Summit(NIC) in the coming month(April 28-19). I hope that there would be high-level participation from AIIB in the event, contributing to building an investment-friendly atmosphere for areas of the priorities in Nepal."

Mentioning that policies have been revised in Nepal aiming to promote foreign investment and private sector investment, the PM urged AIIB to invest confidently.