Nepal faces an annual investment gap of over NPR 750 billion in achieving the Sustainable Development Goals (SDGs) by 2030, according to the National Planning Commission. While an average of NPR 3.024 trillion is needed each year, only about NPR 2.269 trillion is projected to be mobilized, creating a significant shortfall.
The total estimated investment needed from 2024 to 2030 is NPR 21.165 trillion. However, contributions from public, private, cooperative, and household sectors will still leave a shortfall of NPR 5.285 trillion.
- Public Sector: Requires NPR 13.647 trillion but faces a gap of NPR 2.981 trillion.
- Private Sector: Needs NPR 7.273 trillion but expects a gap of NPR 2.304 trillion.
- Cooperatives, NGOs, and Households: Estimated investments, but no clear gap projections.
The largest funding gaps are expected in sectors like infrastructure, sustainable cities, education, health, drinking water, and sanitation. Even with projected increases in development aid (ODA) and foreign direct investment (FDI), the financial gap remains large.
Director Anita Paudel highlights the need for high economic growth, better foreign aid management, inter-government coordination, and tax reforms to address the financing needs.
Key Investment Priorities (by SDG Goals)
- Industry, Innovation, and Infrastructure (SDG-9): 24% of total investment needs.
- Clean Energy (SDG-7): 12%.
- No Poverty (SDG-1): 11%.
- Other key areas: Zero Hunger, Quality Education, Good Health, Gender Equality, Water and Sanitation, Sustainable Cities, and Climate Action.
Strategic Measures for Resource Mobilization
- Expand the tax base and reform tax rates.
- Integrate non-budgetary expenses into the national budget framework.
- Engage the private sector in public services.
- Improve cost-efficiency in public spending.
- Promote Public-Private Partnerships (PPPs) and Public-Community Partnerships (PCPs).
- Maximize use of financial transfers and internal resources at provincial and local levels.
The Commission stresses that without strong and coordinated strategies, Nepal may struggle to meet its SDG targets by 2030.
