Nepal and Germany concluded negotiations on bilateral development cooperation on June 16–17, 2026, with Germany committing up to €37.6 million — approximately $40.5 million — in technical and financial cooperation for the 2026–2027 period. The funds are earmarked for projects covering renewable energy, power distribution, climate-resilient agriculture, revenue sector reform, quality infrastructure, gender equality, sustainable economic development, and access to finance.
Foreign Minister Shisir Khanal, speaking in mid-June, said the government is committed to aligning development assistance with national priorities and strengthening Nepal's diplomatic engagement to fulfill its global commitments.
The Germany deal is among the more substantial bilateral aid agreements concluded in recent months, as Nepal works to diversify its international development partnerships. This context is particularly relevant given earlier reports from 2025 flagging uncertainty over the future of US foreign aid, including USAID commitments of $659 million through 2027 and $550 million in MCC assistance.