Foreign Aid Inflow Declines, Nepal Achieves Less Than Half of Annual Target

Nepal has witnessed a slowdown in foreign aid inflows in recent years. According to the Ministry of Finance, the government had set a target of receiving NPR 52.33 billion in foreign grants in fiscal year 2081/82, but managed to secure only NPR 23.53 billion, equivalent to just 32.62% of the target.

In the previous fiscal year 2080/81, the government had aimed for NPR 49.94 billion in grants but received only NPR 24 billion, or 49.08% of the goal. Compared to last year, grant inflows dropped by 2.04%, the ministry reported.

Loan inflows also failed to meet expectations. The government had planned to borrow NPR 217 billion in FY 2081/82 but managed only NPR 125.40 billion, which accounts for 57.78% of the target. In contrast, during FY 2080/81, the target was NPR 212 billion, out of which NPR 125.66 billion was received, achieving 59.07% of the goal. This indicates a 0.21% decline in foreign loan inflows compared to the previous year.

Overall, Nepal had targeted NPR 269 billion in foreign assistance in FY 2081/82 but secured only NPR 148 billion, or 55.15% of the target. In the previous year, the achievement rate stood at 56.98%. Thus, total foreign assistance has declined by 0.49% year-on-year.