Nepal has received a foreign aid commitment of Rs. 273.04 billion for the Fiscal Year 2024/25, which is above the annual estimates announced in the budget of the same year. Statistics from the Ministry of Finance (MoF) showed that the country received the commitments of Rs. 215.54 billion for loans and Rs. 57.50 billion for grants.
Nepal’s development partners (DPs) in the year are the World Bank, Asian Development Bank, the Foreign Commonwealth and Development Office (FCDO) of the UK, Germany, the European Union, China, Norway, International Fund for Agricultural Development, Switzerland, World Vision International, Japan and the Strategic Climate Fund. The commitments Nepal received were in infrastructure, transport, environment and climate, governance, disaster management, agriculture and irrigation, water and education.
With commitments in the environment of above Rs. 118 billion, ADB has emerged as the largest development partner for Nepal. The World Bank remains the second-largest development partner for Nepal, with about Rs. 100 billion in aid commitment. It is supporting road improvements, disaster resilience, GRID, bridge improvement and trade improvement.
Among these, the transport sector received a commitment of Rs. 63.94 billion, the Energy sector witnessed a commitment of Rs. 56.41 billion, Likewise, aid commitment in the environment, forest and climate change sector stood at Rs. 55.87 billion where priority projects are Green, Resilient and Inclusive Development (GRID), climate resilient landscapes and livelihood, managing watersheds, and forests and prosperity.
Other major sectors receiving the foreign aid in loans and grants are irrigation Rs. 28.47 billion, water Rs. 25.53 billion, disaster management Rs. 20.13 billion, social Rs. 9.6 billion and agriculture Rs. 9.4 billion. Smaller cooperation commitments were made in governance and education as well. In FY 2023/24, the ADB was the largest donor, followed by the WB, EU, UK, Germany, Japan, Switzerland and Finland.
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