Foreign aid commitments drop to Rs 161.46 billion
Summary
Nepal’s foreign aid commitments fell to Rs 161.46 billion in fiscal year 2025/26, down sharply from the previous year as weak spending capacity and rising domestic resource mobilisation reduced dependence on external assistance. The largest shares went to roads and physical infrastructure, public financial management, and drinking water and sanitation.
Key Points
- Nepal received foreign aid commitments worth Rs 161.46 billion in fiscal year 2025/26, far below the Rs 273 billion committed in the previous year.
- Grants made up 23 percent of the total, while concessional loans accounted for 77 percent, showing continued reliance on debt-based external financing.
- Roads and physical infrastructure drew the biggest share of commitments, followed by public financial management, drinking water and sanitation, climate change and environment, and energy.
- The Finance Ministry says foreign aid dependence has declined over the long term, but weak spending capacity and project delays continue to limit aid utilisation.
