Nepal received foreign aid commitments worth Rs 161.46 billion in fiscal year 2025/26, a significant drop from the Rs 273 billion committed in the previous fiscal year, according to a Ministry of Finance report released last week.
The commitments comprise grants and concessional loans. The decline comes as the government's capacity to spend remains weak.
Foreign aid commitments decline
The latest figure marks a substantial decrease in the value of aid commitments compared with the previous fiscal year. The Ministry of Finance report records the commitments for fiscal year 2025/26 at Rs 161.46 billion.
Foreign aid commitments include both grant assistance and loans offered on concessional terms. The report's figures cover these two forms of support.
Spending capacity remains weak
The decline in commitments comes at a time when the government's spending capacity remains weak. The information provided does not specify the reasons for the fall in aid commitments or detail how much of the committed assistance has been disbursed.
