The government is set to borrow Rs 215 billion from multilateral lending institutions in the upcoming fiscal year 2025/26, according to the Ministry of Finance. Out of the total Rs 232 billion in committed foreign assistance, only Rs 16.92 billion will come in the form of grants, with the remaining amount comprising loans.
The Asian Development Bank (ADB) will be the largest contributor, extending support worth Rs 117 billion. Of this, Rs 3.26 billion will be provided as grants, and the rest as loans.
The World Bank will provide Rs 75.80 billion in assistance, which includes Rs 3.75 billion in loan form.
In the education sector, development partners have committed Rs 15.06 billion, with Nepal expected to receive around Rs 5 billion as grants.
The Asian Infrastructure Investment Bank (AIIB) has pledged Rs 4.81 billion, including Rs 4.35 billion in grants.
Meanwhile, the International Monetary Fund (IMF) will be extending concessional loans totaling Rs 11.20 billion.
This significant reliance on external loans underscores Nepal’s growing dependence on multilateral funding to bridge fiscal gaps and finance development initiatives, while the relatively small share of grants highlights a continued shift toward loan-based foreign assistance.
