KATHMANDU, Aug. 4: Nepal fell well short of its foreign aid mobilization target in the last fiscal year, securing only 45.66 percent of the amount it had planned to mobilize, largely due to slow capital expenditure.
According to records maintained by the Ministry of Finance (MoF), the government mobilized foreign aid worth Rs 131.80 billion in Fiscal Year (FY) 2025/26 against a target of Rs 287.11 billion, including foreign loans and grants.
Foreign loan mobilization reached 46.85 percent of the target. During the review year, the government had aimed to mobilize Rs 233.66 billion in foreign loans but managed to secure only Rs 109.46 billion.
Govt secures less than Rs 3 billion in foreign grants, far shor...
Similarly, against a target of Rs 53.44 billion in foreign grants, the government received only Rs 21.61 billion.
According to MoF officials, Nepal's foreign aid mobilization is closely linked to capital expenditure. Since development projects failed to progress at the expected pace, the disbursement and utilization of foreign aid also remained below target.
Meanwhile, the country has secured foreign aid commitments worth Rs 161.46 billion for the current fiscal year (FY 2026/27). Of the total committed amount, Rs 124.33 billion is in the form of foreign loans, while Rs 37.12 billion has been pledged as grants.
Of the total commitments, Rs 58.83 billion has come from bilateral development partners, while Rs 102.62 billion has been pledged by multilateral agencies for FY 2026/27.
