Nepal misses foreign grant targets again as commitments drop
Summary
Nepal received Rs 31.26 billion in foreign grants during fiscal year 2025/26, only 58.5% of its target, with aid commitments also significantly dropping.
Key Points
- Nepal received Rs 31.26 billion in foreign grants in fiscal year 2025/26, achieving just 58.5% of its Rs 53.45 billion target.
- Over the past five years, Nepal has averaged only 46.12% of its foreign grant targets due to poor project execution, shifting global aid, and inflated budgets.
- Grant commitments dropped significantly to Rs 40.88 billion in mid-June 2025/26 from Rs 67.26 billion the previous year.
- Total foreign aid (loans and grants) fell 39.3% to Rs 134.83 billion compared to Rs 222 billion in fiscal year 2024/25 despite a higher grant target being set for the current year.
