US to provide Rs 79.71 billion to Nepal for its graduation to a middle-income country

KATHMANDU, May 5: The United States has agreed to provide Rs 79.71 billion ($659 million) in grant assistance to Nepal to support its graduation to a middle-income country from a least developed country.  

The Government of Nepal, through the Ministry of Finance (MoF), and the United States, through the US Agency for International Development (USAID), signed a new Development Objective Agreement on Thursday. The assistance agreement, which will span five years, outlines the broad development areas of US and Nepal cooperation and collaboration. The grant over the five-year period will support Nepal’s goal of graduating to a middle-income country. 

According to the MoF, partnering with the Government of Nepal, civil society, and the private sector, US assistance will advance Nepal’s sustainable development through strengthened democratic governance, enterprise-driven economic growth and increased resilience for communities at risk of natural disasters and climate change. 

The amount of assistance will be recorded in Nepal's Red Book and transparently implemented through both on and off treasury modalities. The USAID will develop projects under this assistance agreement in collaboration with the line ministries and implement them in accordance with the Nepal government’s rules and regulations. 

Ishwori Prasad Aryal, joint secretary and Head of the International Economic Cooperation Coordination Division (IECCD) at the MoF, and Sepideh Keyvanshad, USAID/Nepal Mission Director, signed and exchanged the agreement on behalf of their respective governments.