Nepal Sees 117.3 Percent Surge in Foreign Aid Commitments
July 3, 2025 | Investopaper
Nepal has witnessed an increase in foreign aid commitments, doubling to Rs. 221 billion by the end of Chaitra in the fiscal year 2081/82, according to a bulletin released by the Ministry of Finance on Wednesday. This marks a 117.3% rise compared to the Rs. 102 billion recorded during the same period in the previous fiscal year.
Foreign aid, typically comprising loans and grants, plays a critical role in Nepal’s budget. For the current fiscal year, 74.3% of the committed aid consists of loans, while 25.7% is in the form of grants. These commitments, pledged by development partner institutions, are directed toward various sectors to support Nepal’s development goals.
The energy sector has emerged as the largest recipient, securing 25.4% of the total aid commitment. This is followed by the environment and climate sector at 21.7%, irrigation at 12.8%, and water supply at 11.5%. Other notable allocations include 9.1% for disaster management, 6% for transportation, 4.3% each for social and agricultural sectors, 2.5% for the Ministry of Forests and Environment, 1.5% for nutrition, 0.6% for infrastructure, and 0.2% for governance, which received the smallest share.
For the fiscal year 2081/82, the government has set a target to finance its expenditure through Rs. 217.67 billion in foreign loans and Rs. 52.33 billion in foreign grants.
