Nepal has witnessed a significant surge in foreign aid commitments during the first eight months of the current Fiscal Year 2024/25, with pledged support more than doubling compared to the same period last year.
According to the latest data from the Ministry of Finance (MoF), Nepal received foreign aid commitments totaling Rs 221.99 billion between mid-August and mid-March. This marks a 119 percent increase compared to the Rs 101.19 billion pledged during the corresponding period in FY 2023/24.
The MoF report highlights that 74.3 percent of the total aid commitments came in the form of concessional loans, while the remaining 25.7 percent were grants. This trend reflects continued donor confidence in Nepal’s development agenda, despite a global environment of tightening aid budgets.
Among the various sectors, the energy sector emerged as the top recipient, accounting for 25.4 percent of total commitments. The environment and climate sector followed closely with 21.7 percent, underscoring the growing emphasis on sustainable development and climate resilience.
Other sectors receiving notable aid commitments include:
- Irrigation – 12.8%
- Water supply – 11.5%
- Disaster management – 9.1%
- Transportation infrastructure – 6%
- Agriculture and social sectors – 4.3% each
The substantial rise in foreign aid commitments reflects both Nepal’s strategic focus on infrastructure and climate-related projects and its strengthened engagement with international development partners.
