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German Nepal assistance

The German government has pledged up to EUR 37.6 million (approximately NPR 5.4 billion) in financial and technical assistance for the fiscal period 2026–2027.

According to an official press release titled “Nepal-Germany Bilateral Negotiations – Press Release.pdf”, the commitment was finalized on Wednesday following the conclusion of two-day bilateral negotiations held in Kathmandu. The fresh aid package will directly back Nepal’s development priorities across three critical areas: energy, sustainable economic development, and health.

The Nepali delegation was led by Dr. Dhani Ram Sharma, Chief of the International Economic Relations Division at the Ministry of Finance, while Ms. Barbara Schafer represented the German Federal Ministry for Economic Cooperation and Development.

For Nepal, the commitment brings much-needed resource certainty for key national initiatives. The funds are earmarked for strengthening the country’s power sector through renewable energy promotion, energy efficiency, and transmission and power distribution improvements. It will also support climate-resilient agricultural development, revenue sector reforms, quality infrastructure, and initiatives aimed at improving access to finance and gender equality.

During the meetings, Ms. Schafer assured the Nepali side that Germany remains a reliable and constant partner committed to supporting Nepal’s long-term Sustainable Development Goals.

The agreed-upon projects will feature a mix of new initiatives and the continuation of ongoing programs. These will be implemented through established German development agencies working in Nepal, including the KfW Development Bank, GIZ, and the German National Metrology Institute (PTB).

In addition to this direct bilateral funding, the negotiations highlighted Germany’s extensive indirect support to Nepal through multilateral channels, such as the European Union, various United Nations agencies, and the Global Fund.

Emphasizing the holistic nature of the partnership, German Ambassador to Nepal, Mr. Udo Volz, stated that sustainable development in Nepal relies on a strong foundation of human rights, the rule of law, and a vibrant civil society.

With both nations expressing high satisfaction over the open and constructive talks, the partnership is set to move forward smoothly. The next round of these biennial government-to-government negotiations will take place in Germany in 2028 to review progress and chart out future cooperation.