Aid Falls by 74%: Is Nepal Losing the World’s Trust?

Foreign aid inflow to Nepal has fallen sharply in recent months, marking a decline the country has not seen in years. Figures from the first three months of the fiscal year 2025/26 make this clear. Aid pledges have dropped by 74.35 percent compared to last year. Only about Rs 9.54 billion in foreign aid had reached Nepal by mid-October—far below the Rs 37.18 billion received during the same period last year. This is a striking difference of Rs 27.64 billion in just three months, indicating a shift in how development partners currently view Nepal. This year, all aid has come in the form of grants, with around 71 percent directed towards the energy sector. China has committed support in health and job training, but progress has been slow. The overall slowdown suggests donors are increasingly cautious about Nepal’s internal situation. While previous declines in aid were often linked to global financial pressures or shifting donor priorities, this year’s drop appears to be influenced by developments within Nepal itself.