KATHMANDU: Nepal missed its foreign grant target in fiscal year 2025/26, receiving Rs 31.26 billion—just 58.5% of its Rs 53.45 billion goal.

Over the last five years, the country has averaged only 46.12% of its targeted grants due to poor project execution, global aid shifts, and artificially inflated budget targets.

Foreign aid commitments also shrank significantly. By mid-June of fiscal year 2025/26, grant commitments fell to Rs 40.88 billion (down from Rs 67.26 billion the previous year).

Total foreign assistance—comprising Rs 93.95 billion in loans and Rs 40.88 billion in grants—contracted 39.3% to Rs 134.83 billion, compared to Rs 222 billion in the same period of fiscal year 2024/25.

Despite this decline, the government has set a higher grant target of Rs 61.75 billion for the current fiscal year.