The Nepalese government secured foreign assistance commitments worth Rs 205.84 billion in the first six months of the current fiscal year—more than three times the amount pledged in the same period last year.
According to the Ministry of Finance (MoF), development partners pledged this amount between mid-July 2024 and mid-January 2025. Of the total commitment, Rs 151.40 billion (73.40%) will be provided as loans.
In the same period last fiscal year, donor agencies pledged Rs 59.97 billion, with Rs 20.27 billion (33.80%) in grants and the remaining Rs 39.70 billion in concessional loans.
Major Donors and Agreements
The UK, Japan, Germany, China, and Norway emerged as key bilateral donors, while multilateral donors included the European Union, World Bank (WB), and Asian Development Bank (ADB).
During the review period, the government signed 16 agreements, securing Rs 54.76 billion in grants. Six agreements focused on energy development (Rs 56.41 billion), while five targeted infrastructure development (Rs 40.37 billion).
Nepal continues to rely heavily on external funding for development projects. The WB has pledged USD 150 million (Rs 20.13 billion) in budgetary support, while the ADB, the largest donor, has committed USD 868 million, including USD 37 million in grants.
Challenges in Aid Realization
Despite securing substantial pledges, the actual disbursement of funds has been slow. As of mid-January, the government had received only Rs 49.09 billion—just 18.18% of its Rs 270 billion target for the fiscal year.
MoF officials cite project delays and donor reimbursement lags as key challenges. The ministry has had to arrange additional funds through cash transfers to compensate for delayed disbursements. To address this issue, the MoF is working to improve project preparedness and secure counterpart funding for donor-supported initiatives.
