KATHMANDU: The World Bank has increased Nepal’s loan interest rate from 0.75% to 1.5%, effective from July.

At an orientation on foreign aid operations organized by NAFIJ and the Ministry of Finance, Dhaniram Sharma, chief of the Foreign Aid Coordination Division, said the hike follows Nepal’s graduation from the list of least developed countries. “The rate increased because we’ve moved up economically,” he said.

Sharma noted that new strategies by the World Bank and ADB—developed in coordination with Nepal—will guide future aid, which is 80% contributed by these two institutions.

He also highlighted the introduction of a “Project Readiness Filter” to prioritize quality and impact in development projects.

Under Secretary Dolendra Sharma pointed out that not all committed aid materializes, citing the MCC as an example.

Ministry officials also shared updates on Nepal’s development finance information system.