Germany pledges €37.6m to support Nepal’s socio-economic development

KATHMANDU: Germany has pledged 37.6 million Euros to support Nepal’s socio-economic development over the next two years. The funding will be provided through technical and financial cooperation for 2026-2027, officials announced following the successful conclusion of the Nepal-German G2G Negotiations on Development Cooperation. The bilateral talks were held at the Ministry of Finance in Singha Durbar, Kathmandu.

The high-level negotiations, held June 16-17, focused on aligning joint initiatives with Nepal's national development priorities across key sectors. The Nepali delegation was led by Dhani Ram Sharma, chief of the International Economic Relations Division at the Ministry of Finance, while the German delegation was headed by Barbara Schäfer, head of the South Asia Division at the German Federal Ministry for Economic Cooperation and Development.

According to official details, cooperation in the health sector will specifically support Paropakar Maternity and Women's Hospital, alongside broader initiatives to strengthen access to quality healthcare, health insurance, digitalization, and overall service delivery in coordination with the Ministry of Health and Population.

In the energy sector, working with the Ministry of Energy, Water Resources and Irrigation, the assistance will focus on strengthening the national power grid and supporting climate-friendly energy systems and policies.

For sustainable economic development, the agreed framework aims to create direct opportunities for farmers, youth, women entrepreneurs, and micro, small, and medium enterprises to boost local economies. It will also continue supporting revenue sector reform and quality infrastructure through coordination with local entities including the Inland Revenue Department, Nepal Electricity Authority, and the Nepal Bureau of Standards and Metrology.

Furthermore, both delegations underlined the role of a strong civil society. The new package, supported through GIZ Nepal, is designed to assist locally led development processes while actively fostering social cohesion, human rights, and transitional justice for a peaceful community.

The assistance includes new initiatives and the continuation of ongoing programmes implemented through KfW Development Bank, the German Agency for International Cooperation, and the German National Metrology Institute. The two sides also reviewed Germany’s support through multilateral channels, including United Nations agencies, the Global Fund, and partnerships with the European Union.

German Ambassador to Nepal Udo Volz emphasised that sustainable development requires a solid foundation of human rights, the rule of law, and a vibrant civil society. Officials expressed satisfaction with the dialogue, noting that the agreed framework will guide joint efforts to ensure commitments reach local institutions and communities across Nepal. The next biennial government-to-government negotiations are scheduled to take place in Germany in 2028.