As of June 3, 2026, Nepal had received Rs 20.91 billion in foreign grants against a government target of Rs 53.45 billion for the current fiscal year 2025/26, a significant shortfall. The decline is attributed to Nepal's rising per capita income, which reduces its eligibility for concessional grant assistance, as well as shifting global donor resource allocation.
The World Bank and Asian Development Bank remain the largest sources of development finance for Nepal. The shortfall has implications for project implementation across sectors dependent on foreign grant funding.